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Closing on time

October 20th, 2020 3:21 PM by Sam Kader

The TRID rule and its associated disclosures was part of a mandate to CFPB in the Dodd-Frank Wall Street Reform and Consumer Protection Act in effect since 2015. 

Under TRID - borrowers will receive 2 government-designed forms during the mortgage process :

  1. Loan Estimate 
  2. Closing Disclosure
By law, these 2 forms must be issued at specific times when specific conditions have been met. Loan Estimate must be issued within 3 days of receiving all of these 6 items below: 

  1. Name
  2. Income 
  3. Social Security Number
  4. Property Address
  5. Estimate value of the subject property
  6. The loan amount. 
3 days are counted as normal business days not including Saturdays, Sundays, and legal public holidays. Any change to any of the 6 items above will require a new disclosure - Revised Loan Estimate must be issued at least 1 day before Closing Disclosure or at least 4 days prior to closing.

Closing Disclosure must be issued at a minimum - 3 days prior to closing. Days are counted including Saturdays but excluding Sundays and legal public holidays.  Closing Disclosure confirms final loan costs supported by Settlement Statement issued by escrow/title company and final loan terms supported by signed loan disclosures issued by your loan originator/lender.

What can trigger a delay? 

Loan Estimate alteration. Changes to any of the 6 components in Loan Estimate will require a revised Loan Estimate to be drafted and re-setting the clock back 3 days.

E-mail tardiness. Closing Disclosure and Loan Estimate are are sent via e-mail. Both documents must be opened and viewed instantly. The 3 days clock will only start ticking once that email has been clicked, opened, and viewed by a borrower. Electronic communication is our preferred way of communication especially under COVID-19.

Escrow irresponsiveness. Lenders will issue a Closing Disclosure (CD) in collaboration with an escrow company. A delay by an escrow agent in issuing a Settlement Statement will result in closing delay.

It takes a team to close successfully and it is my goal to get you to a closing table on time by being proactive and being knowledgeable.  Here are some more tips on closing on time.

Call me with any questions. 
Posted by Sam Kader on October 20th, 2020 3:21 PM

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Pacific Coast Financial, LLC

MLO#130505 Lic# MB 78982

2150 N. 107th Street Suite 170
Seattle, WA 98133