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How Will New TRID Changes Affect Your Chicago Home Purchase?

Today I have Rick Pantoga with me, my local mortgage lending expert here in Chicago. He's going to be explaining some important changes that the real estate market will be experiencing this year. He's been in the business for 29 years, so he's seen both the good and the bad.

On October 3rd of this year, the real estate market saw some big changes. What exactly happened?

It's because of the recent changes that came to the TILA-RESPA Integrated Disclosure (TRID), and this will affect everyone involved in real estate, from consumers to Realtors to lenders. The Consumer Financial Protection Bureau (CFPB) issued a final rule amending regulations the Truth in Lending Act as well as the Real Estate Settlement Procedures Act.

So, what does this mean for you? The TILA-RESPA rule consolidates four disclosures for closed and credit transactions secured by real property into two different forms.

One of these forms is a loan estimate that must be delivered or placed in the mail no later than the 3rd business day after receiving the consumer's application. A closing disclosure must be provided to the consumer at least three business days prior to consummation.

These new disclosures must be provided by a creditor or mortgage banker that receives an application from a consumer for a closed end credit transaction.

The TILA-RESPA rule includes some new restrictions on certain activity prior to consumers receiving the loan estimate. These restrictions include imposing fees on a consumer before the consumer has received the loan estimate, or requiring submission of documents verifying information related to the consumer's application before providing the loan estimate.

Please don't hesitate to contact us with any questions about this issue. We understand that it may seem a little confusing or overwhelming. We would be happy to clear up any misconceptions that you may have!

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