Mortgage Monday with Margaret: Football and TRID

 The NFL kicks off its season this week and each team will be doing its best to outmaneuver and deceive the opponent in order to gain an advantage. Trickery will play a big role in the outcomes as defenses will be wondering if the QB will be throwing the ball to the WR, the TE or the RB. Perhaps, the QB might even pitch the ball to the RB who could throw it to the WR or TE. With all the acronyms and possibilities, only a true fan can truly know what just happened at the end of the play!

As the NFL gets more complicated this fall, the mortgage industry gets a little simpler! For loan applications taken on or after October 3rd, the mortgage industry will be required to follow the new TILA-RESPA Integrated Disclosure rules (TRID). Instead of adding acronyms, TRID reduces the number by requiring a LE (Loan Estimate) to replace the TIL and GFE at the beginning of the loan process. Also, the HUD1 and final TIL will be replaced by the CD (Closing Disclosure) at the end of the process. In addition to reducing the amount of disclosures, the information contained in the LE and CD are much easier for the consumer to understand and the chance for an unethical lender to deceive the consumer is greatly reduced! 

In the long run, these new disclosures will simplify the industry while giving the consumer a better set of documents to review and understand. However, in the short term, the new forms will cause some pain for lenders and title companies who have not prepared properly for these changes.

More than ever, the need to choose a reliable lender and title company should be a major consideration for all homebuyers. If you are a Realtor working with clients, please make sure to quiz your Lender and Title Agent to ensure their readiness for TRID. If you are a homebuyer, only work with reputable lenders with good track records and Loan Officers who will take the time to explain the loan process and the loan options you can choose from. At Homeowners Financial Group, we are ready for TRID and we don’t have any trick plays!


Margaret Livingston | Licensed Mortgage Professional Homeowners Financial Group LLC   Mobile: (602) 309-5558  Email:  NMLS# 309479




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