CFPB, TRID and the New 3-Day Rule

CFPB, TRID and the New 3-Day Rule

Without change we cannot truly experience exponential growth. Well, major change is taking place nationally within the procedure of buying and selling a home. The CFPB has now implemented the new TRID rules. This including a new 3 day rule in regards to closing.

                Jennifer Ferri, owner and operator of Title Junction, spends her early summer mornings breaking down these new rules of the real estate industry to local realtors in order to give them a better understanding of what to expect beginning on October 3rd so that way, in turn, they could provide the same to their clients.

She explains, “One specific difference in the way we do things later this year will boil down to the new 3-day rule.” The 3-day rule provides the buyer with three days to come up with any questions, concerns, or possible newfound errors within closing disclosure document before actually closing. Can you believe a borrower will actually get 3 days to review the closing disclosure – (settlement statement)?

There are 4 different methods of delivery to the closing disclosure.

First, the most obvious, one may hand deliver the documents therefore initiating the three day period immediately.

In addition, one also has the option of physical mail or even E-mail. In this case, there is a three day waiting period before your three day rule actually begins. This is given to allow travel time of those documents to actually arrive in the buyer’s mailbox.

                For example, if the closing document is mailed on a Tuesday, there is a three day delivery time allotted, then the three day rule begins on Friday. Ultimately leading us to a closing date for the following Tuesday. You are looking at a total of seven days here due to the fact that Sunday is never accounted for.

 But what if one wanted to push this processing a bit quicker by overnighting documents? This is our fourth option. “In this case the three day rule would begin based upon the date confirmed on the buyer’s receipt of overnight delivery” Jennifer says, “this way proven and correct documentation can be supported if it was needed or requested.”

All in all, this new three day rule is going to aide in the buyer’s clarity, detailed understanding, and ultimately their peace of mind so that way when the time to close has arrived, everyone is prepared and undoubtedly settled to close.

Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public. Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com.