Many in the real estate industry are worried that TILA – RESPA Integrated Disclosures (TRID) is going to negatively affect their closing rate.
Starting October 3, borrowers must receive the Closing Disclosure (CD) three days before closing. If there are certain changes made to the loan during those three days, the closing could be delayed up to three more days and a revised CD must be provided to the borrower.
The Consumer Financial Protection Bureau (CFPB) has assured the industry that this rule will not delay most closings. However, considering how common it is today for a loan file to be changed at the closing table, this rule does have the potential to trip up those who aren’t up to date on regulations.
So, how is it possible for TRID to be a positive change for real estate agents?
Real Estate Agents and the CFPB Want the Same Things
The CFPB’s intent behind TRID is not to create chaos and delays. The extra three-day window for borrowers to read the CD is meant to protect and help them better comprehend the finite details of their loan.
When homebuyers are armed with this knowledge, they are more assured and comfortable on the day of closing that they are buying a home they can both love and afford. Helping homebuyers reach this conclusion before closing day is one of the most important “to-dos” on a real estate agent’s checklist — TRID is simply enforcing this objective.
The Indispensable Technology Needed for TRID
Significant opportunities are waiting for realtors who are not just “following the rules” but who believe in them wholeheartedly: faster closings and happy buyers, and therefore more commissions. However, wanting something to happen and making it happen are two different things. The mortgage process has inherent obstacles that make it very difficult to provide the CD to the homebuyer in a timely manner.
For example, take a look at the graphic below.
The mortgage process is incredibly complex, and the need for collaboration is very real. But professionals involved in originating, approving and closing the loan create documents for the same file, and do not necessarily cross-check their information. This is a non-collaborative process that excludes the homebuyer and can lead to errors that delay delivery of the CD — or even a failed closing.
The good news is that ATS Secured’s technology will help everyone involved in a mortgage loan work together to ensure a timely closing. Instead of several participants working on different versions of the same loan documents, they, with appropriate levels of transparency, can view, edit, approve and sign a single file—in essence, a consensus ledger—while tracking who is in charge of what, in real time.
Closing More Loans Means More Commission
ATS Secured’s technology will assist real estate agents in closing loans on a timely basis. Not only will this help them “follow the rules” but it will also assist them in educating the homebuyer and keeping them informed in real time. An informed homebuyer is comfortable and prepared throughout the loan process, which can help real estate agents close more loans at a faster pace, which, in turn, translates to more commissions.
TRID doesn’t have to be feared. If the right technology is leveraged to keep loan files accurate and accessible, the upcoming regulations can empower real estate agents to supercharge their business.
Want to make your mortgage process easier and more accurate? Contact ATS Secured today.