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REALTORS® are mistaken if they believe almost any circumstance will reset the three-day rule for giving Closing Disclosures to buyers before closings, says the IAR Legal Services Team.
In fact, during Thursday’s IAR Legal Webinar, “TRID Revisited,” IAR Hotline Attorney Betsy Urbance and IAR Transaction Helpline Attorney Jeff Baker noted only three reasons can be used to reset the three-day period:
- A change to the loan’s annual percentage rate (APR) beyond the permitted tolerance,
- A change to the loan product or
- The addition of a pre-payment penalty.
Betsy Urbance and Jeffrey Baker
“I hope that’s at least one myth we’ve busted in this webinar,” said Urbance.
In addition to dispelling myths, Urbance and Baker reviewed information they’d gathered from the Consumer Financial Protection Bureau and other key sources since TRID rule changes kicked in on Oct. 3.
Exceptions to the rule
They also cited four circumstances when TRID would NOT apply:
- Home Equity Lines of Credit (HELOCs),
- Reverse mortgages,
- Loans secured by personal property, such as a mobile home or a dwelling not attached to real property and
- All-cash transactions.
What about Saturdays?
Another important fact under the new TRID rules, Urbance and Baker said, is that Saturdays would always be considered business days with respect to Closing Disclosures, while they would only be considered business days for Loan Estimates when the specified lenders are open for business on Saturdays.
Get best practices through IAR
To find out more about what the Legal Services Team has gathered for IAR members, including several examples of best practices, login to the recorded version of “TRID Revisited” or listen to the audio only recording.
The next IAR Legal Webinar is tentatively scheduled for Dec. 17.
