Why TRID Is Going To Extend Your Escrow!
That’s right. TRID is coming and it’s going to extend your Escrow process. Now most of you are probably thinking, “I don’t know what this TRID nonsense is, but extending my Escrow?!?! Please go on…”
Without going into too much detail, here’s the short hand: Lenders (all lenders) are switching over to a new set of disclosures, and this set of disclosures comes with a mandatory 3 day disclosure (or waiting) period. Now, in the loan process, we already have a lot of waiting periods, so what makes this one such a big deal? Well, this waiting period comes AFTER the borrower is cleared for their final loan docs, and BEFORE they can sign. Normally we would be at a day or two, in this process, sometimes less. So one day, what’s the big deal, right? Wrong, because, the final figures have to be COMPLETED before the borrower is cleared for docs. This means Escrows final numbers have to be complete before the borrower can be cleared for their three day waiting period. And if circumstances change, (like a re-lock for example) and the APR increases by more than.125, well another 3 day disclosure period is in store for you.
And that’s just the tip of the iceberg. So if you are wondering how this could affect you as a real estate agent, or as a borrower, e-mail me at Scott@GreenMeansGrow.com and I’ll be more than happy to discuss the details with you.