Simplification. That is the purpose of TRID (TILA-RESPA Integrated Disclosure) loans for homebuyers and those looking to refinance. TRID is a new mortgage initiative by the Consumer Financial Protection Bureau to help empower consumers during the mortgage process.

How TRID is Changing the Mortgage Process

The documentation associated with the mortgage process has changed significantly. The Good Faith Estimate, Final Truth-in-Lending Disclosure and HUD 1 Settlement statement have all been condensed into new disclosures. You will now find two new disclosures required by TRID, the Loan Estimate and Closing Disclosure. The goal is to provide transparency and understanding to the consumer as they are buying or refinancing their home— which is definitely a good thing.

Loan Estimate

The Loan Estimate replaces the Good Faith Estimate and Truth-in-Lending disclosure. The LE was created to provide consumers a more clear understanding of the terms and costs associated with their loan.

Closing Disclosure

The Closing Disclosure replaces the HUD-1 and Final Truth-in-Lending Disclosure. The CD provides the finalized information including mortgage terms, projected payments and summarization of the closing costs.

What TRID Changes Mean for Consumers

The changes are noted to be a great movement for the consumers, but provide complication to mortgage lenders. The common thought across the mortgage and real estate industry is that the mortgage process will be lengthened, causing a delay in closing on a home or refinancing. The so called “bumps in the road” in the new mortgage process that TRID presents has many believing that no mortgage lending company can continue to conduct business as usual. Some even think that the loan process could take up to 60 days. THINK AGAIN.

Mortgage company, RP Funding, is standing their ground. While most lenders are thinking about how they are going to work around the new process, RP Funding is embracing the changes without skipping a beat. They proved their preparedness by making history on October 16, 2015 as being one of the first in the country to close a TRID Loan in 10 days. That’s right. It didn’t take 30, 45 or even 60 days. They were able to get a buyer in Boca Raton, FL, who received incredible financing options, to the closing table in 10 days.

What did the new homeowner have to say about this seemingly impossible feat? “We had a very strict deadline” the new homeowner stated. “When [our loan officers] told us that they could complete the loan in 10 days, I thought they were bluffing. They made a believer out of me!”

When Robert Palmer, CEO of RP Funding, was asked how his company is still able to close loans within 10 days even with the new regulations, he provided a clear message to consumers: “For other companies, salespeople are the lifeblood of their business; at RP Funding, the customers are our lifeblood.” 

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You can contact RP Funding to learn more about TRID Loans (1-866-765-0765).