How Will New TRID Changes Affect Your New Jersey Home Purchase?

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Today I have Matthew Northup with me, my local mortgage lending expert here in Warren. He's going to be explaining some important changes that the real estate market will be experiencing this year.

On October 3rd, changes to the TILA-RESPA Integrated Disclosure (TRID) were made, which affect everyone involved in the real estate industry, from consumers to Realtors to lenders. The Consumer Financial Protection Bureau (CFPB) issued a final rule amending regulations the Truth in Lending Act as well as the Real Estate Settlement Procedures Act.

So, what does this mean for you? The TILA-RESPA rule consolidates four disclosures for closed and credit transactions secured by real property into two different forms.

One of these forms is a loan estimate that must be delivered or placed in the mail no later than the 3rd business day after receiving the consumer's application. A closing disclosure must be provided to the consumer at least three business days prior to consummation.

These new disclosures must be provided by a creditor or mortgage banker that receives an application from a consumer for a closed end credit transaction. However, creditors will still be required to use the current Good Faith Estimate, HUD 1 and Truth in Lending forms for applications received prior to August 1, 2015. After that date, these forms will no longer be used.

Please don't hesitate to contact us with any questions about this issue. We understand that it may seem a little confusing or overwhelming. We would be happy to clear up any misconceptions that you may have!