Complying With Disclosure Rules For Mortgages
The TILA-RESPA Integrated Disclosure Rule (TRID) combined a number of forms to make mortgage disclosures simpler for consumers. Compliance with this updated rule is essential for any lender.
At Mewborn & DeSelms, Attorneys at Law, we are compliant with the TRID requirements and other federal regulations for mortgage closings. We can help you understand how the new disclosure documents will impact your closing and what they mean for your mortgage. In every closing, we provide our clients with straightforward advice and guidance so that they can feel confident in the paperwork they are signing and the terms of their loans.
From Jacksonville, we help clients with real estate transactions throughout Eastern North Carolina.
What Disclosure Forms Are Required Under TRID?
Under the updated rule, two new forms, the loan estimate and the closing disclosure, have been created. These forms combine several previously used forms and provide borrowers with clear language about the terms of their loan.
These forms have information about the loan, including the interest rate, type of loan, monthly payments and closing costs. They also have information about tax and insurance costs and other key information that can help a consumer understand their loan.
What Are The Disclosure Forms Given To Borrowers?
The loan estimate must be provided to the borrower within three days of their application for a loan. The closing disclosure must be provided at least three days before the closing. This gives borrowers time to review the terms of their loan and the expected costs.
In most situations, changes to the closing disclosure form will not require a new three-day waiting period before the closing. However, in limited situations, a new three-day waiting period may be required. In general, a change to the annual percentage rate, the addition of a prepayment penalty or a change in the loan product will require a new three-day review period. A lender may also have unique rules and processes that go above and beyond the federal requirements.
Our lawyers have experience working with area lenders in mortgage closings, and we can help you understand the impact of any change to your loan on the closing process and your costs.