The Sky is Not Falling!

I’m sure you’ve heard by now that beginning October 3rd, the TILA RESPA Integrated Disclosure rule otherwise known as TRID will go into effect. That being said, we wanted to take this time to tell you that we’re here for you- the sky is not falling!

Here are a few important things we want you to remember regarding TRID:

• The new 3 page Loan Estimate (LE) at application will replace the current GFE and early TIL
• The new 5 page Closing Disclosure (CD) replaces final TIL and HUD-1
• Only THREE changes will require the new 3 day review:
  • The APR (annual percentage rate) increases by more than 1/8 of a percent
  • A prepayment penalty is added making it expensive to refinance or sell
  • The basic loan product changes such as a switch from a fixed rate to adjustable interest rate

Another thing we want you to remember is that we’ve gone through and survived multiple changes before! From appraisal changes to good faith estimate changes, fluctuations in the industry are something we’ve embraced that have made us stronger than ever.

So, with TRID coming you may be wondering, is it a big change? Yes. Is it an important change? Definitely. President of Mortgage Bankers Association, David Stevens, notes the significance of this change in a Wall Street Journal aricle saying, “It’s massive. It involves every real-estate agent, settlement-service provider, every consumer, mortgage originator, everyone.” That’s why it is now more vital than ever for clients to work with top quality real estate agents and mortgage lenders.We at Inlanta Mortgage are prepared to help with any fears or questions you may have and will prove to be a solid resource for you to use now through these changes and in the future.

We feel the best years in the real estate industry are still ahead of us and that there are plenty of blue skies in our future! Please contact us with any questions or concerns you may have regarding this new rule.