Improvement in the real estate sector following the nation’s 2008 financial crisis has been steady, though the Consumer Financial Protection Bureau’s new regulations may slow the recovery. Filled with perceived benefits and hindrances, TILA-RESPA Integrated Disclosures (TRID) has been criticized by many industry professionals for its addition of new mandated waiting periods.
TRID went into effect on October 3rd, and combines regulations previously known as the Real Estate Settlement Procedures Act and the Truth in Lending Act. The benefit to this integration is the clarity and quickness with which buyers are able to view detailed information, such as monthly payments, interest rates, and closing costs. However, the new rule change is said to slow down closings, thanks to a number of required waiting periods. These stipulations include:
- No less than three days before closing, the consumer must be given a closing disclosure document.
- The lender must wait a minimum of three days to ensure receipt of the aforementioned closing document if the form was mailed or emailed.
- If a change greater than 0.125 of a percent was made to the annual percentage rate of the deal, the buyer is provided with a mandatory seven day waiting period to acknowledge the change.
- Lenders will provide closing disclosure documents to borrowers, instead of settlement or title companies. This may cause confusion and delays if lenders have to go back and forth with the borrower to request further information.
- Good-faith estimates and the HUD-1 settlement form are now eliminated from use under the new regulations.
Homebuyers attempting to obtain quick financial acceptance and beat out all-cash buyers will now be in greater jeopardy of having their desired property swindled out from under them. Though we cannot accurately predict the outcomes of the new regulations from such a small sample size, the situation will surely be monitored closely as time moves forward. If you find yourself battling foreclosure and do not know where to turn, Graham Legal can certainly help. We invite you to schedule an initial consultation with an experienced Miami foreclosure attorney today.