"I'm From the Government, and I'm Here to Help"

Ronald Reagan once said that the nine most terrifying words in the English language are “I’m from the government and I’m here to help.”

Lord knows I’m thankful that we have a government. But they’re about to “help” the real estate community in a way that is going to make closing on a house a lot more complicated for all of us.

On October 3, 2015, the new TILA-RESPA Integrated Disclosure rule (TRID), also called the “Know Before You Owe” rule, will go into effect for any real estate transaction involving a mortgage.  The rule consolidates four existing disclosure documents into two — a Loan Estimate (LE) and a Closing Document (CD). 

So far so good.

BUT . . . the Closing Document has to be delivered to the buyer three days before closing, so that he or she has adequate time to review it. Which all seems well and good. But it means that closing can’t happen until three days after underwriting has issued a “clear to close” and figures are finalized. Which means that buyers and sellers who would like to — or who need to — close sooner, can’t. Even if everyone is ready to go.

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