Heard that one before and it usually means trouble. This time it could be true. CFPB has launched a site to provide Realtors with information about the new TRID disclosures, their use and benefits to the consumer (Know Before You Owe).
The information is intended to educate Realtors on what has changed, what information a lender needs to provide a consumer when they’re thinking of buying and financing a home, and how the new process will benefit the consumer and the Realtor. It appears as though it may be helpful.
It’s worth a look. Much of the information is useful and should help Realtors have a much better understanding of the lending process and what the consumer should do, and be provided, once they decide to shop for their home.
Areas covered are:
- Smooth, on time closings; areas the Realtor should have their buyers concentrate on to help the process.
- How new disclosures will streamline the process and provide better understanding to consumers?
- What has and has not changed; 7 steps for concentration by the Realtor;
- Why extra 3 days reviews (Closing Disclosures) are unlikely; what changes require a new 3-day wait;
- Resources the Realtor may share with their buyers. Education materials for consumers.
It is important that Realtors are aware of this site and utilize the information provided. This is something of benefit that your originators can bring to their Realtors. Maybe, hold on-site educational seminars on the upcoming changes using the information provided by CFPB.
This information and the referenced consumer education material can also be very useful to your loan originators. It provides the originators with a better understanding of the process and also prepares them for what an applicant may/should know when applying for their loan.
It couldn’t hurt to have your processors, underwriters and closers also take a look. The more educated your staff is on the new disclosures and process the better equipped they are to service your customers and avoid problems down the road.
CFPB advises the Realtor to get their potential buyers preapproved for their mortgage. This will benefit them when they shop. So, lenders should be prepared to provide this service.
They also recommend the consumer get multiple Loan Estimates so they can compare lenders to get the best deal. This means educated consumers will be carefully reviewing lender’s offerings and comparing them against the competition. This, too, is something that lenders and their originators should be aware of when pre-approving potential buyers or when taking applications. They may not get a second chance if they don’t put their best foot forward in the beginning.
They game will change come October. Are you prepared to play different? CFPB is educating Realtors and consumers so they are prepared. This should also benefit those lenders who are preparing to do business the right way under the new rules.
Know what your customers know to help stay ahead of, or least even with, your competition. Knowledge is power. Succeed at the game.