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The one TRID change I have had a hard time adjusting to

By
Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

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).

Silver Spring REALTORBefore 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).

Posted by

Andrea Bedard
Thompson Co., REALTORS®

Silver Spring, Maryland
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Comments (47)

Jamie King
Hoty Enterprises, Inc. - Huron, OH
Sandusky, OH

Andrea, we have a clause pre-printed in our Purchase Agreement that gives permission for the escrow agent to give a copy of the settlemet statement to the agents. Your office/broker/board should consider that change.

Like you, I have not witnessed delays in closing as we were forewarned. I just recently put a house under contract, with a VA loan and it closed in LESS THAN 30 DAYS. I was stunned.

Mar 02, 2016 08:45 PM
Andrea Bedard

NAR is working on it, too, Jamie.


Isn't it beautiful?! I am working on a VA right now as well and we were told 35 days from contract to close.

Mar 03, 2016 06:03 AM
Alan Gross
PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD
Loan Consultant

Wow Andrea - You really hit the spot with this post. With all the interest and comments I hope it was featured. I don't think our "friends" at the CFBP know the kinds of problems they have caused. It'd  be nice if they could see this post and the responses to it.

Mar 02, 2016 09:33 PM
Andrea Bedard

It was Alan Gross. I can work with this change but it takes some getting used to. I love Lisa's comment:  "of course I have only managed every step of your purchase / sale, so why in the world would I need to be in on the consummation". That sums it up perfectly!

Mar 03, 2016 06:05 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Andrea , this is an important point because last minute to the Closing Doc. can have consequences !

Mar 02, 2016 11:05 PM
Andrea Bedard

Yes it can and we don't want our clients to be in that position.

Mar 03, 2016 06:05 AM
Ron Aguilar
Gateway Mortgage Group - Saint George, UT
Mortgage & Real Estate Advisor since 1995

I am hoping that agents and lenders do not usually refer to all of this as "TRID" to the consumer. Explain to them what the acronym means and speak in their language...

Mar 02, 2016 11:07 PM
Andrea Bedard

I don't think that TILA-RESPA-Integrated Disclosure is any less confusing. I posted another blog post a few days ago, summarized it and linked to it from this post - at the very top.

Mar 03, 2016 06:08 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

What I got out of this? Life can not be lived by rules and regulations alone but by people & their common senses. The brain may get fed, but the heart always rules

Mar 02, 2016 11:11 PM
Richie Alan Naggar

Thank you Andrea Bedard for your decent posting

Mar 03, 2016 06:13 AM
Andrea Bedard

Thank you Richie! Wonderful comment!

Mar 03, 2016 06:09 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Thankfully, I am not faced with that.  I do get the docs to review before the clients sign off. Amen to what Richie Alan Naggar said. I refused to give a clients SS# on a FIRPTA long before Arnold changed the law. Common sense prevails.

Mar 02, 2016 11:31 PM
Andrea Bedard

We have a "Financial Info Sheet" here that some listing agents still request to be submitted with an offer. Years ago it asked to list the buyer(s) SSN numbers but I told my buyers to ignore it because it really was not needed info and why risk it? The form has since been revised but I am still not a friend of it.. too much personal info on there.

Mar 03, 2016 06:11 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I'm still not used to looking a the new closing disclosures but I haven't had any issues with lenders so far thank goodness. 

Mar 02, 2016 11:43 PM
Andrea Bedard

It takes a while, doesn't it?

Mar 03, 2016 06:12 AM
Matt Brady
Watermark Capital - Del Mar, CA
One of San Diego's Best Equity Advisors

First. we would like you to stop applying logic to anything we are required to do as lenders. Legislation, while written with good intention often harms those it was meant to protect. That is why you are seeing more cash sales and the buyer that was supposed to be "protected" is missing out. We still close TRID purchases in 30 days. The key is to have a pre-approved client when you write the offer. Waiting to collect everything we need until after the offer is accepted can put the COE at risk.

Mar 02, 2016 11:52 PM
Andrea Bedard

Turning off logic is a challenge for me Matt Brady. Collecting all info upfront makes sense and makes for a smoother process. I wish more lenders would operate like that!

Mar 03, 2016 06:14 AM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Title companies here cannot give us any info now.

I just had a closing that was almost delayed.  I asked the buyer to send me the CD that they had just approved.  One little error.  Luckily, the lender moved quickly to send a new CD and a new 3 day wait.  We just barely closed on time.

Mar 03, 2016 12:10 AM
Andrea Bedard

Thank you for sharing this perfect example Virginia Hepp. I am glad you were still able to close on time!

Mar 03, 2016 06:15 AM
Theresa Akin
CORPUS CHRISTI REALTY GROUP - Corpus Christi, TX

As Lisa Von Domek pointed out we have the TAR-2516 AUTHORIZATION TO FURNISH TILA-RESPA INTEGRATED DISCLOSURES form releasing information so we can check for discrepancies.  

Mar 03, 2016 01:02 AM
Virginia Hepp - Mesquite NV REALTOR

Some lenders do NOT give out any info now, regardless of whether the buyer has agreed or not.


And the title companies have their own policies, too.

Mar 03, 2016 09:37 AM
Andrea Bedard

I read somewhere (wish I could remember so I could link to it) that not all lenders seem to honor that authorization Theresa.

Mar 03, 2016 06:16 AM
Andrea Bedard

Thanks Virginia for stepping in and emphasizing my point!

Mar 03, 2016 10:13 AM
Theresa Akin

Some won't some will. At least we have a form to authorize by the seller and/ or the buyer. Andrea, I totally understoood your point. I was not contradicting, I was stating the state of Texas has the TAR 2516 FOR AUTHORIZATION.  Some may sign the form and some won't. It's there. And it's also true, everyone has their policies.

Mar 04, 2016 05:18 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Seller are weary about the changes and prefer offers made in cash instead.

Mar 03, 2016 03:23 AM
Andrea Bedard

I love receiving cash offers on my listings, too, Sam!

Mar 03, 2016 06:17 AM
Jim Harper
Atlanta Communities Real Estate - Marietta, GA

Involved in a "big Bank" deal right now. They would not even tell me the appraisal was ok!

Mar 03, 2016 05:58 AM
Andrea Bedard

Thank you for your comment Jim Harper! That is another good example. I noticed it, too, last year. A lender I worked with before suddenly wasn't allowed to tell me whether or not the appraisal came back OK. In the past it had never been an issue to say "yep, we are good"! We had to wait for official underwriter approval which didn't come in until the 11th hour. That is nerve-wrecking for any buyer!

Mar 03, 2016 06:20 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

TRID is such a big mess. We are getting used to the new paperwork but the delays and extra costs are really hurting borrowers and sellers.

Mar 03, 2016 09:07 AM
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

We now have a State of Texas promulgated form that allows the borrower to authorize us (their own agent) to receive the CD and other documentation ahead of time.  Leave it bureaucrats to help their constituents by making the process considerably more complex and not allow the person they hired to help them,  have access to the information. 

Mar 03, 2016 12:05 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Yep we should really see those.  I was shocked when my client called me and started asking questions and I had not gotten a copy.

Mar 08, 2016 02:40 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I agree!  I'm going to have a discussion with my next set of sellers for this month and work to get access when they receive it by asking them to forward to me.  

Mar 14, 2016 02:24 PM
Cyndy Adair
Adair Real Estate Services, LLC - Melbourne, FL

Why should we be denied information on a contract that we negotiated and are responsible for? I have always checked the settlement statement to be sure it is what the contract says it should be.  Lately, after the fact, I have found several closing disclosures wrong and in several of the instances the "mistake" money went to the title company.  Most lenders we have worked with in the last 4-5 months have been very reluctant to even give us status reports other than - "We are moving forward."  My hands are certainly feeling tied.

Mar 28, 2016 06:16 AM
Dora Griffin
D A Griffin Financial.LLC - Fort Thomas, KY
NMLS 6380

I'm not a huge TRID fan, but reading this post it occurs to me that there may be some confusion about the definition of closing disclosure.  The loan estimate is the first disclosure from the lender that shows all the fees which cannot increase unless there is a bona fide reason. The closing disclosure finalizes those fees. These documents are all about the lender fees, there are no Realtor fees on either of these forms.  Whereas there is a closing disclosure available at least 3 days before closing for the borrower there is nothing for a Realtor to check on that form.  

The ALTA settlement sheet is created from the closing disclosure and after the file is cleared to close.  This form will show the Realtor's commission, seller fees, etc. It also may be available mere hours before closing depending upon the file. It does not give the Realtor a lot of time, but they certainly can ask for changes if their commission is not calculated correctly or other fees that typically affect the seller side of the transaction. 

Mar 28, 2016 11:06 PM
Eileen Burns 954.483.3912
Trans State Commercial Realty Inc. - Fort Lauderdale, FL
FLorida Real Estate Connector

Closing disclosure arrives with only your side of transaction when given permission by one party.  A special clause can be added by both parties in transaction to give permission to send CD to agents involved in the transaction as errors do occur on who pays what...

Mar 28, 2016 11:20 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Nov. 2017, two years after TRID implementation, here's my observation:

  • It holds loan officers accountable for their initial offering of terms and costs, which in turn helps reduce last-minute surprises to the buyer.
  • It adds 3 to 5 days or more to the closing process.
Nov 24, 2017 12:50 PM