Cheryl Knowlton: Hi everybody, and welcome to day two of, What in the world is TRID?
Clay Johnson: Yes, TILA/RESPA Integrated Disclosure Act just to reinforce that.
Cheryl Knowlton: Yes indeed. So let’s talk about, Clay, the three-day rule. So that was a major, major change.
Clay Johnson: It was, and in a very good way.
Cheryl Knowlton: Yes it was.
Clay Johnson: First, I think everybody was kind of panicked like this is going to slow things down. And so it was really great because they said we’re going to give you that closing disclosure, speaking of the consumer, that you can then look at that closing disclosure three days in advance.
Cheryl Knowlton: Three days before closing and that’s required, that’s not a suggestion, that’s not a good idea, that is required by law.
Clay Johnson: I know that all the real estate agents and the mortgage professionals were a little stressed out about that. But I think once that took effect, it kind of took away that big rush at the end, because you know that once the closing disclosure is there, it’s a three-day trigger. And so then everybody’s able to schedule in advance. They’re not trying to rush people into the closing at last minute. So, very good I think from that perspective, that’s one part of the law that I really liked, actually.
Cheryl Knowlton: Absolutely. So no more. Clay and I have both been in this industry long enough that I remember standing at the printer at the title company, taking the documents off and handing them to the consumer while they were still warm along with the warm chocolate chip cookies.
Clay Johnson: Yes, for sure.
Cheryl Knowlton: That was not good for consumers.
Clay Johnson: No, they were stressed and they had that deer in the headlights look. It’s just a much more mellow, easy-going process now because they’ve already had a chance to look at that and ask the mortgage professional any questions that they may have about that, or the real estate agent as well.
Cheryl Knowlton: Absolutely and get anything changed that might not be what they thought they were getting. No more bait and switch.
Clay Johnson: That’s exactly right.
Cheryl Knowlton: Okay, so in our next episode, Clay and I will be chatting about some of the triggers that might make it so that the amazing lender will have to reissue the closing disclosure to your consumer. So we’ll see you next time.
Clay Johnson: Bye.