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The New TRID Rule Takes Effect October 3, 2015

Thursday Oct 1, 2015
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There is a new rule being implemented into the real estate market on October 3, 2015 called the TRID rule. TRID is an acronym for TILA RESPA Integrated Disclosure and is also known as the Know Before your Owe rule.

The Consumer Financial Protection Bureau (CFPB) implemented the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) back in November of 2013. At Indigo Mortgage we want to help potential homebuyers understand the benefits this rule will bring them when starting their mortgage loan process.

This new TRID rule requires lenders to issue a loan estimate at the time of application that must include disclosures from the TILA and the RESPA. Lenders must also provide a closing disclosure that must match the disclosures on the loan estimate. Each lender must provide a disclosure of discount points, total cost of the loan, and broker compensation must be included in the loan estimate and cannot be changed once issued, according to this rule.

Apart from disclosure requirements, there are also time requirements specified with the TRID rule. For example, after receiving an application for a loan, the lender must deliver or mail the loan estimate to the borrower within three days and no sooner than seven days before the completion of the loan.

For the borrower, this means that shopping around for a mortgage will now be easier. Potential buyers can now check various lenders to compare interest rates and closing costs. For lenders, this means the days of manipulating closing costs to make a loan look more appealing, are over. They can no longer estimate their fees and give misleading information about closing costs.

At Indigo Mortgage, we are huge advocates of shopping loans around for the best terms. This new rule will help borrowers to do just that. Our best advice is to avoid national lenders who refuse to give loan estimates without an upfront appraisal fee, and state that they will match other lenders’ lending fees. To make sure you are getting the best terms for your loan and honest service, contact Indigo Mortgage because nobody cares more about your mortgage loan.

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. For questions about selecting a mortgage lender, contact Indigo Mortgage in Albuquerque at (505) 836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #188348), and can provide loans anywhere in New Mexico.

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