Leonard H. Craver

Leonard H. Craver
Leonard H. "Tony" Craver

Saturday, November 7, 2015

The Fed is After Your Wallet, Again

If you have not heard of the term TRID, you will the next time you are involved in a real estate transaction.  By the way, note that TRID spelled backwards is DIRT.  TRID is an acronym for how the FED has totally redesigned the loan application and closing process.  I recently attended a seminar where the panel consisted of four of the most prominent real estate attorneys in the area.  This will be a summary of what you can expect.

Expect your loan application process to go smoothly because lenders are used to being well educated in what you need to do.  You will find a real urgent requirement for you to do your part right away.  Most of the changes seem to affect the closing process which the FED expects us all to refer to from now on as the "Consummation". I refuse.

Attorneys are being required to reconfigure their offices, sometimes to the tune of tens of thousands of dollars. These changes are required to ensure that the Buyers and Sellers are unable to meet. The other attorneys in the offices who practice different types of law even cannot be exposed to you either. Real estate attorney files must be kept under lock and key. I am not making all this stuff up. The amount of paper work for closing attorneys has increased so much that your attorney fees for closing will go up. Starting immediately, closing fees that used to range from $600 to $650 are now going to cost between $1000 to $1500.  Wired funds will be required. The consumer pays for that too. There are many more changes but more on this later.