After 5 full months since TRID went into effect, we are slowly but surely adjusting. According to MRIS/RBI the one big impact has been longer contract periods, 5 days on average in the DC Metro. And although the National Mortgage News is reporting closing delays of up to 20 days - 8 on average - I have not run into this issue *knocking on wood*.
There is one big change, however, that I have had a hard time adjusting to: REALTORS® are no longer automatically receiving the HUD1, now called Closing Disclosure (CD).
Before TRID the title company would email us a preliminary HUD1 for review before closing. We could double-check that all numbers are correct and alert the processor to anything that seemed off. I did catch a few over the years, more often than not, a transaction fee showed up on my clients side of the HUD1 where there shouldn't have been one. Thompson Company, REALTORS has not and will not charge our clients an "admin" or "transaction processing" fee.
TRID indirectly changed this procedure. The Closing Disclosure is now send directly from the lender to the borrower and although TRID does not prohibit the sharing with the clients' REALTOR®, lenders are citing "privacy laws" and are not passing it on.
The first time around I felt rather awkward. Here I was telling my client that I am still waiting for the HUD1 (not sure if I can get used to not calling it that either) not knowing that I wouldn't receive a copy. I went into settlement blindly and did not like it.
I am not alone. According to a report by NAR (National Association of REALTORS), more than 50% of the surveyed REALTORS® "had problems getting closing documents for transactions and half found errors when they did get access".
I am all for protecting privacy and sensitive information. All for it. But this one is just strange to me. I work closely with my clients for many weeks/months, we all sign a Buyer-Broker Agreement and we discuss their financial situation, loan pre-approval and commitment. I also work closely with the lender (buying and selling Real Estate is a team effort) and I am a (big) part of the negotiations that result in the very numbers the CD is based on.
It is my duty to fully represent my clients. This duty does not end 3 days before settlement (under TRID CDs are issued 3 days prior to closing for a review period).
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