Cheryl Knowlton: Hi everybody, and welcome to this week’s fabulous episode of Cheryl and Clay. Yay!
Clay Johnson: Hi.
Cheryl Knowlton: Okay, today we’re going to be talking about TRID. And you’re like, what in the heck is that? T-R-I-D, write that down. It’s an acronym within an acronym, which stands for …
Clay Johnson: TILA-RESPA Integrated Disclosure Act.
Cheryl Knowlton: Yes. So right … so TILA is the Truth and Lending Act.
Clay Johnson: Yes.
Cheryl Knowlton: And RESPA is the Real Estate Settlement and Procedures Act.
Clay Johnson: Real Estate Settlement and Procedures Act.
Cheryl Knowlton: And so after the mortgage meltdown of 2008, the Dodd-Frank Act … Don’t even get us started on that. That’s a year-long topic.
Clay Johnson: Yes it is.
Cheryl Knowlton: It came out with this, with TRID. And let’s talk about how it affects you and we’re going to do a week-long series on this, but let’s talk about some of the basics.
Clay Johnson: Well, I think when it first came out, everybody was a little nervous about it. They were like, “How is this going to affect our business? Is it going to slow us down?”
Cheryl Knowlton: People were freaking out.
Clay Johnson: They were freaking out. The great thing about it is it gave everybody, especially the consumer, which is who they had in mind when they did that. What are you going to be looking at when you get closing? Because before that, they’d get to closing and sometimes it was surprising. Things were different.
Cheryl Knowlton: And it was not always a good surprise.
Clay Johnson: It wasn’t always a good thing. Yeah, it wasn’t. It was kind of not always the under promise over-deliver.
Cheryl Knowlton: Right.
Clay Johnson: Or it was, in a bad way.
Cheryl Knowlton: Right.
Clay Johnson: And so this was a way of them saying, all right, we need to have this at least three days in advance. What does it look like? And are you comfortable with that? And is it … what was represented to you accurately?
Cheryl Knowlton: Absolutely. And so the biggest things that you need to know, the closing disclosure. As a real estate professional and even as a consumer, the closing disclosure is that essential document that will be given to the consumer at least three days prior to settlement. And we’ll talk about some of those factors in our next episode.
Clay Johnson: That’s right.
Cheryl Knowlton: Yes, indeed.
Clay Johnson: So, until next time.
Cheryl Knowlton: Until next time.