Just a reminder, as if you need it, the new TRID rules become effective with loan apps taken as of August 1, 2015. Besides the two new disclosures that everyone is preparing for, there is another big change.
With an application, you need to provide the consumer with a new settlement cost booklet (New Booklet). Like the HUD-1, the current booklet has been around for quite some time. Like the Loan Estimate, this new toolkit must be provided within 3 business days of receipt of the loan application. More stuff to worry about.
Sometimes, change is good. This new “toolkit”, as it is called by CFPB, presents the consumer with a wealth of information about their loan and more clearly outlines what they should expect. This not only benefits the borrower but the lender as well.
Smart loan originators will study the guide to be able to provide their applicants with a much better expectation of what will happen once they apply, how the process works, and what to expect at the closing. They can also use as it as roadmap toward a more successful closing.
Let’s face it; a better educated and knowledgeable borrower will benefit the lender in the long run. The new booklet can also be used by lenders as a training guide for processors, underwriters and closers, especially new employees. That way, employees get a better understanding of the process and of what information is being provided to the applicant. Better understanding of the good stuff
Besides getting ready for the new disclosures, make sure you are also preparing to provide and understand the new Mortgage Shopping Toolkit. Did you know of this change? Have you ordered the new booklets? Are your originators aware of this new requirement? Are you ready for TRID?
Just a little more “stuff” the think about.