What is TRID?

TRID Integrated Disclosure Rule

” The Know Before You Owe Rule”

We’re going to go over legislation of the present rules for the United States. It’s when there is an institutional lender giving fund on the deal.

Who This Does Not Effect

If you’re outside the United States this doesn’t consequence you.
if you’re to purchase a home with cash
if you’re buying a house with a local hard money lender
if you’re flipping a house with all cash
*if you doing a subject two inventive closing
where you’re taking over someone’s lend subject too
if you’re doing a inventive owner financing

Who This DOES Effect:

This is just when we have an institutional lender committed.
You have typically that happening when you are reselling a house “youve had” fixed up that is a retail customer.
A retail customer is the Person who is going to buy the home and live there.

TRID

The first thing I want to point out about this TRID. T- R-I-D, that’s the acronym that the people inside the industry mostly closely commonwealths are announcing it.
- The know before you owe is the street name for it. This is the standard accommodation testimony, HUD statement this has been around for numerous, numerous, many years.
  - It is issued by the HUD which is Housing and Urban Development Organization with the governmental forces.
- There’s know before you own.
- In addition to being able to HUD, what’s also going to happen is that a lender is going to have to issue their form of a HUD.
  - It’s going to be six pages long but quite different from that and it is going to have all these disclosures so that before someone buys the belonging they supposedly know what they’re going themselves into.

Important Information

It intended for lenders who are going to have to get into the HUD creation business if you are able to.
They’re going to have to start creating these disclosure closing proclamations which by the route this is a quirky little tit part. They’re exploiting the motto not closing but consummation. Not kidding.

A closing is now a consummation based on this legislation.

It means that now when there’s going to be a closing, that lender … We previously know if you’ve been in the business before how difficult it can be for that lender to get the final cleared to shut, to get the court doc out, to get everything ready for the actual closing. They now have an completely new adjusted of responsibilities and commits groups together this disclosure. This is this TRID if you are able to. That is going to form closings retard at the very least.

This is a Big Change

if you have any changes that may have to occur, that then has to be changed at the lender degree, lender then has to send out potentially a new disclosure and then that introduces another three period minimum sometimes more depending on how those closes been the delivered.

Delay for at least three more dates. You can see that the main thing to take away from this, what are the entrances? You have so many resources on this you can read about.
I’m giving you the thirty thousand paw view as a real estate investor. You need to know that come October when there is a closing that involves an institutional lender, you’re going to have postpones and if you want to change official documents, such as the closing proclamations or maybe there’s an extra lien sounds up at the end.
That’s going to delay you. Just prepare for that. That is critically important.

More Defers

Outside of that legislation that we’ve talked about as far as delaying things because now the lender is getting involved in this world of closing accounts, you likewise have some other things going on in the background.

There’s a couple of different software companionships that are jockeying for position to be involved in this and some of these large title company who have had software systems in place such as First American or Republic, they now either have to update their subsisting software or somehow integrate with other ones. Some are going to be stuck in the old route of doing things and so that’s going to make things difficult as well because they’re going to want to integrate. When I say they, I necessitate these closing companionships.
Real Estate Agents:

As a real estate agent, if you’re representing brand-new customers that are buying properties and they’re going to institutional loan, you’ve got a big responsibility now because you’ve got to be able to clarify for them what some of these different things are and make sure that everything get done early so there aren’t lags, because this happens.

Sometimes people lose their loan fast, sometimes they can’t even get a loan anymore because some other legislation popped up. It means that if you are going to be selling to retail customers and you’re an investor,

Be patient. Circumstances could change and the closing could get messed up.
if you’re representing customers in the in the room of retail customers you better know your stuff. Normally this business of real estate with the changes that are arising with this legislation.

Study Up!

I’m trying to give you simply an overall view, but start read up on this, start read up on TRID, start read up on Know Before You Owe and specifically the CFPB. I think it’s Consumer Finance Protection Bureau board, something like that. That is the actual part of the government that is issuing this. You can look up on their website and learn everything you need to know about it. You can talk to your law district professionals in your region whether title companionships, real estate agents.

I’m just telling you get ready for lags and that is very, very important in this business. To be patient when “theres” delays and better yet learn this business so well that you can thought things off before they become lags so you can always nip every little detail in the bud.

What if you get to a day before closing it up you forgot to do the pest inspection? Well, you better simply pay that out of your pocket before you were supposed to deposit it on the hood.
Make sure things are in order and be organized part of these closings specially when you’ve got a retail purchaser involved.
I’m as an investor who loves selling to retail customers because I attain more money.
- If I flip to another investor that the project works very well when you have a live that needs a ton of drive, but if a live simply necessitates some cosmetic drive as you seen from other videos, I like to sell to retail customers.
- That’s why I’m making twenty four thousand four hundred fifty one dollars and thirty seven cents. That’s how it’s done.
- You don’t attain that kind of money when it is usually to flip to other investors because they take the lion’s share of earning.

If you’re going to be in the business prepares for lags and then likewise learn what’s going on here.
I talked to your title companionship, get a feel for what their persona is going to be, how easy they’re going to be able to integrate with their software to really get this thing moving.
There’s going to be changes too. After all that as well expect there to be more lags, more a difference in actually rolling this thing out. It already has been delayed formerly.