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Is there now more truth in lending?

indigenous says

Is there now more truth in lending?

It's called closing disclosure now. Their is a legit 3 day process now before getting docs out, so the first few months are going to rough, software glitches, lenders not prepped properly

This is why we saw the biggest spike in application in the first week in October because anyone who got their applications signed before October 3rd didn't have to follow the new rules

Look for this to be an issue until April of 2016 but the first report was going to get whacked for it

These regulations have a way of doing the opposite of what they say they will do.

indigenous says

These regulations have a way of doing the opposite of what they say they will do.

The new loan estimates are so much better, the closing disclosure process was over kill, but it is what it is, in time everyone will get it, delays will be shorter and shorter

But will it really be better?

Logan Mohtashami says

indigenous says

These regulations have a way of doing the opposite of what they say they will do.

The new loan estimates are so much better, the closing disclosure process was over kill, but it is what it is, in time everyone will get it, delays will be shorter and shorter

Logan, does anyone really read all that disclosure stuff? If they do, do they understand the nonsense?

Strategist says

Logan, does anyone really read all that disclosure stuff? If they do, do they understand the nonsense?

It's much easier to read now,

But the closing disclosure aspect does take time away from closing

http://loganmohtashami.com/2015/12/22/trid-impacted-existing-home-sales/

A lot noise around housing data on TRID... this is what I was trying to say back in October ... up and down take it all with a grain of salt

Total existing-home sales ascended 14.7% to 5.46 million in December from 4.76 million in November.

TRID heavy noise in the data are all gone now, any delays will be small compared to last month

Ironman says

What were the NOT SA numbers?

The same thing happened with purchase applications, you had a 1 week massive rise and then a big fall

Here you had a fall and then a rise, it's all a wash

November 4.76 SAARS
December 5.46 SAARS

That could be the biggest one month gap in the data ever

So what is new with the new closing disclosure policy? What goes on in the 3 day process?

Blurtman says

So what is new with the new closing disclosure policy? What goes on in the 3 day process?

The best way for me to describe this ( outside the traditional delays of everyone learning every lender's way of approaching TRID) which has to be factored as well.
All my lenders have a different way of processing this

So, Prior to Doc conditions are all done... now it's time to go to docs.

Now, their is a something called a closing disclosure which in reality is a 2nd GFE.

This closing disclosure has to be legit final $ amount you need for closing. If anything changes at the end some lenders can cancel the entire loan and you have to start all over again.

So, this closing disclosure process can take up to 3 days to settle out before you get the loan docs sent to escrow.

Before which at least in my eye a fine process. Escrow gives you a estimated Closing sheet of all the cost and you go over this with your buyers and the docs are at escrow to sign.

Now, it can take up 3 days, if anything changes to the numbers, it needs to be re disclosure

i know i don't want to show up to the title company and be told that i'll need another $10k out of pocket to close the deal. theoretically TRID should prevent these kinds of surprises.

landtof says

i know i don't want to show up to the title company and be told that i'll need another $10k out of pocket to close the deal. theoretically TRID should prevent these kinds of surprises

I can't imagine that happens much, usually you go over final estimate cost before the borrower signs the loan docs because you don't want to have the notary discuss the items.

However, they put the law in, so everyone has to work off of that.

In a few months everyone should have a better grasp of dealing with TRID and minimizing the delays

yeah that's an extreme example. i view it as more of a pop-up window warning that says "are you sure you want to take this loan, and all of it's terms make sense to you, and the lender has given you a GFE, and the lender has given you CPB references and credit counseling hotlines, and you have read everything and so on...?"