You must get your loan application into your lender by October 2nd if you want to avoid the new lending laws commonly called TRID.* There are three reasons why you would want to do so.
First, TRID requires new waiting periods in the loan process that are predicted to turn 30-day closings into 45 days. This is especially true if your lender is a big slow-moving bank, or if you don’t submit absolutely all of your documentation into your loan officer right at the start, or if your closing attorney/escrow agent isn’t onboard with the new pace.
Second, TRID will strip away your ability to change your mind regarding loan size, the loan program, or interest rate-lender credit, because doing so will trigger new waiting periods that could push you out of contract. TRID will also force you to lock in your interest rate sooner than with the present system.
Third, you probably don’t want to be the October 3rd guinea pig. Or the October 4th guinea pig. My advice is to do what you can to negotiate a mutually signed contract and get it in to your loan officer before the close of business Friday, October 2nd.
Heads-Up! An application is not what you submitted for your pre-approval. According to TRID, an application means there is a specific property address included.
I have to wonder how busy October 2 will be! Speaking for myself, I will work until midnight if needed–and I will do so with the biggest smile you ever saw.
They say there is a silver lining to every cloud. One good thing about TRID is that it has forced lenders to hire more compliance officers (the watchdogs who make sure the lender doesn’t accidentally overstep a guideline, miss a signature on a form, or fail to adhere to a waiting period).
I saw a sign that reads, “TRID: Keeping America employed one compliance officer at a time.”
True enough.
*TRID stands for Truth-in-Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure. (Credit goes to the Feds for coming up with that mouthful.)
State licensed in CA, WA
