TRID is now in Effect. What does this mean?

What is TRID?

TRID is an acronym for TILA- RESPA Integrated Disclosure (also referred to as the TILA-RESPA Rule) and applies to most closed-end Borrower credit transactions secured by real property. The rule does not apply to HELOCs, reverse mortgage, and a dwelling not attached to real property (i.e. mobile homes).

TRID consolidates four existing disclosures required under TILA and RESPA for closed-end credit transactions secured by real property into two forms:

Loan Estimate: Combines the Good Faith Estimate and the Initial Truth-In-Lending Statement.

Closing Disclosure: Combines the HUD-1 and the Final Truth-In-Lending Statement.

Timing Requirements for TRID

A revised Loan Estimate must be delivered or placed in the mail to the Borrower no later than three business days after receiving a bona fide change circumstance.
A revised Loan Estimate cannot be issued on or after the date the Closing Disclosure is provided.

The revised Loan Estimate must be received by the Borrower no later than four business days prior to consummation. If the revised Loan Estimate is being mailed it must be placed in the mail no later than seven business days before consummation of the transaction to allow 3 business days for receipt

However, if the Lender has evidence that the Borrower received the revised Loan Estimate earlier than three business days after it is mailed or delivered, it may rely on that evidence and consider it to be received on that date.

NOTE: For purposes of the four-business-day period prior to consummation, “business day” means all calendar days except Sundays and legal public holidays such as New Year’s Day, the Birthday of Martin Luther King, Jr., Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

What are the General Requirements for the Closing Disclosure?

The Borrower must receive the Closing Disclosure no later than three business days before consummation of the loan and generally must contain the actual terms and costs of the transaction. Lenders may estimate disclosures using the best information reasonably available when the actual term or cost is not reasonably available to the Lender at the time the disclosure is made. The Lender is required to provide corrected disclosures containing the actual terms of the transaction at or before consummation.
If the actual terms or costs of the transaction change prior to consummation, the Lender must provide a corrected disclosure that contains the actual terms of the transaction and comply with the timing requirements, and requirements for providing corrected disclosures due to subsequent changes.

NOTE: If a corrected disclosure is issued, the Borrower must be provided with an additional three-business-day waiting period prior to consummation.

What changes before consummation require a new waiting period

If one of the following occurs after delivery of the Closing Disclosure and before consummation, the Lender must provide a corrected Closing Disclosure containing all changed terms and ensure that the Borrower receives it no later than three business days before consummation.

• The disclosed APR becomes inaccurate. If the annual percentage rate (APR) previously disclosed becomes inaccurate, the Lender must provide a corrected Closing Disclosure with the corrected APR disclosure and all other terms that have changed. The APR’s accuracy is determined according to § 1026.22.

• The loan product changes. If the loan product previously disclosed becomes inaccurate, the Lender must provide a corrected Closing Disclosure with the corrected loan product and all other terms that have changed.

• A prepayment penalty is added. If a prepayment penalty is added to the transaction, the Lender must provide a corrected Closing Disclosure with the prepayment penalty provision disclosed and all other terms that have changed.

What changes do not require a new three-day waiting period?

For any other changes before consummation that do not fall under the three categories above (i.e., related to the APR, loan product, or the addition of a prepayment penalty), the Lender still must provide a corrected Closing Disclosure with any terms or costs that have changed and ensure that the Borrower receives it.

For these changes, there is no additional three-business-day waiting period required. The Lender must ensure only that the Borrower receives the revised Closing Disclosure at or before consummation.

Being a homeowner in Minnesota, means dealing with the ever changing seasons. Here are some tips to get your house ready for a Minnesota winter.

Outside tips for MN Homeowners

Roof Items for MN Homes

Lets start at the top of the house and work our way down. If it’s possible to get on the roof, make sure all of the vents on the roof are clear and unobstructed. This includes, sewer vents, attic vents, exhaust fan vents, and HVAC vents.

Are you ready for a Minnesota winter?

Also, make sure to look for damaged shingles that might lead to water intrusion. Make sure your gutters and downspouts are clear and operational. Remember that safety is very important as any time you get on the roof there is risk. If this is something you are not able to do, please hire a professional.

Siding and Windows for Winter

Make sure that your siding is in good shape and wont allow cold air or moisture into the house. Depending on the type of siding you have perform the appropriate repair. Go around to all of the windows and make sure the seals are good and that that there are no leaks. IF there are leaks make sure to get them repaired. Leaky windows can drastically increase your heating bills. Some people will also choose this time of the year to remove their screens.

Landscaping and Yard Tasks.

If you have an irrigations system, make sure that is blown out and winterized. Make sure your outdoor faucets have a frost free mechanism or that you have shut off the water supply. If you have any water features at your house, make sure they are drained so that they wont break when they ice up. If you have an AC unit, remember to flip the breaker and cover the unit. This will make sure it doesn’t accidently get turned on and will also protect the condenser from the elements.

If you have a septic system, this is a good time to apply straw or coverage to any part of the main line, tanks, or drainfield that could potentially freeze.

This is also a good time to take in any patio furniture and grills.

One last thing is make sure your sidewalks and driveway are ready for snow removal.

Inside the House

Make sure that all fire alarms, carbon monoxide, and gas detectors have fresh batteries and are operational.

Test your smoke alarms and carbon monoxide detectors.

It is a good idea to replace these items on the end of daylight savings time and check on them every month during the winter. Winter in Minnesota comes with an increased fire risk. Make sure your furnace or other heat source is working in tip top shape. It might be a good idea to have a licensed HVAC tech do an inspection. Also be sure to change your filters monthly.

Once again, look at the windows and doors from the inside and make sure the seals are good and insulated. If not this is a great to time repair. Sometimes just some simple weather stripping can save you 15% on your energy bills.

This is by no means a complete list, but this addresses the most common items that will cause a Minnesota homeowner trouble in the harsh Minnesota winters.