Did you know… that the offer you write this weekend could be subject to the new TRID rules?

It is well known that the new TRID rules go into effect on Saturday, October 3, 2015. Whether a transaction is subject to TRID is determined by the date the consumer (aka “buyer”) applies for the loan.

What this means: If an offer is written this Sunday (9/27), the contract ratified on Wednesday (9/30) and the buyer shops interest rates for a couple of days and applies for a loan on Monday (10/5), the loan, and therefore the transaction, is subject to the new TRID rules.

Keep the following points in mind as you write offers this weekend:

  1. If you use the GCAAR or MAR contract, be sure to include the Title Insurance Notice and Addendum (Form 940). Currently, this is a required form; however, I rarely see it in contracts we receive. (Note: When the new GCAAR contract is released on October 1, this form will no longer be required for the GCAAR contract. The new NVAR contract does not require this form.)
  2. The TRID rules will make it nearly impossible for a 30 day closing. Consider writing in a 45 day close to avoid having to obtain contract extensions, or a possible default by the buyer for failure to close by the settlement date.
  3. If the buyer opts for a home inspection, remember that you will want to inspect the repairs more than a week before closing. The final Closing Disclosure Form (CDF) will be mailed 7 days prior to closing and, while a seller credit in lieu of a repair will not trigger a new 3 day waiting period, it will require the lender to issue a new CDF and could possibly delay settlement.
  4. After the inspection for repairs, the buyer may want to perform the final walk through closer to the settlement date. Make sure the contract is written to allow the buyer sufficient access to the property.