What You Need to Know About TRID

Oct 07, 2015

The recent Truth in Lending Act and Real Estate Settlement Procedures Act - known as "TRID" - went into effect on October 3 and could have a big impact on many buyers' closing times.

What is TRID?  

Among other requirements, one of the biggest changes that comes with TRID is the method by which disclosures must be delivered to the borrower and the replacement of the current HUDI settlement statement with a new form titled Closing Disclosure. Currently, HUDI can be revised and delivered to the borrower up to the day of the settlement. Beginning in October, however, the new form must be finalized and in the borrower's possession three days before closing can occur. 

How will TRID impact closing times? 

Because of the newly required three day period, coordinating back-to-back closings (i.e. sell and buy on the same day or sell on Monday, buy on Tuesday) could become very difficult.

Additionally, lenders will no longer be able to compel borrowers to provide income or asset documentation up front to evaluate until after the borrower has received the newly designed loan estimate. 

How can Washington Federal help? 

As a portfolio lender, we've always offered a 45-day rate lock as part of our standard procedures. So, our 45-day lock comes with our regular fee and regular rate. We're ready for TRID, but rest assured, as industry practices and regulatory requirements continue to change, our rate lock program may be adjusted as necessary.

Find out more about how are mortgages are unique.