Maximize Your Real Estate Career with Us!

CFPB / TRID goes into effect October 3rd & these changes will have an impact on the lending process & on the Closing Process.  Please take a class on these changes!  Go to the MX1 Training Calendar & Register for: “Show Me the Money & Get Me to Closing.”  Also, make sure you utilize the Maximum One Affiliated Lenders & Closing Attorneys for fabulous communication as the industry goes through this transition. Lender & Attorney contact information located at the bottom of this newsletter & on the MX1 Blog under “Vendors.”  More information is on the Extranet under “CFPB – TRID Information”

Suggestions to Be Prepared:

  • Check on repairs at least 10 – 14 days PRIOR to closing.  If the Buyer & Seller end up negotiating financially for repairs which have not been completed, this may have to be re-disclosed on the Closing Statement.  Ensure plenty of time for these re-disclosures so as not to delay closing.
  • Schedule closings mid-month & at the beginning of the week.
  • Many Lenders (especially large banks) will be preparing the Closing Disclosure – NOT the Closing Attorney.
  • Lenders preparing Closing Disclosure may NOT have accurate nor current HOA documents – which will inevitably cause a delay & the requirement of a new HOA Transfer Letter or Disclosure Letter which will cost the Buyer or Seller money.
  • Contracts binding under the RE Forms Contract do NOT allow for a Unilateral Extension of Closing Date – if Buyer’s Lender must re-disclose & cause a delay, if Seller does not agree to an extension, Buyer will default on the contract.
  • Consider scheduling closing PRIOR to the actual end date of the contract.
  • Closings may take closer to 2 hours
  • Be on time to closings or they may be re-scheduled
  • Lenders & Attorneys may only send encrypted email
  • Lenders & Closing Attorneys may NOT send you a preliminary Closing Disclosure
  • Closing Attorneys may not send you wire instructions – only to the Buyer
  • Lenders must follow strict time frames based on mandated guidelines
  • Buyers MUST acknowledge receipt of Closing Disclosure
  • Closing Attorneys will have more locked doors in their offices & you will not be able to walk through office unescorted
  • HOA letters WILL be an issue & you will more than likely need 2 letters – negotiate up fron who will pay for these & set the proper expectations
  • Determine who you are to send your Commission Instructions to – the Lender or the Attorney
  • Pay-at-Close may not be honored by Closing Attorneys due to limited space on the new Closing Disclosure
  • The Brokerage Firm Number must be included on the Closing Disclosure
    • MXGA: Firm License #56897
    • MXGA Address: 5041 Dallas Hwy., #700, Powder Springs, GA 30127
    • MXGR: Firm License #62825
    • MXGR Address: 3200 Cobb Galleria Pkwy. #275, Atlanta, GA 30339
  • Your License Number must be included on all Closing Disclosures
  • Back-to-Back closings will be EXTREMELY Difficult due to potential re-disclosure issues
  • Hazard Insurance must be paid-in-full prior to closing
  • Schedule Closings at LEAST 45 days from Binding Agreement Date
  • Agents may not use Closing Attorney’s computers (i.e. to print an Amendment) so bring your file with you & Blank Amendments
  • The Key for you as an agent is to stay in constant and meaningful communication with the Lender and Closing Attorney as well as your clients, customers and co-op agents.
  • Stay as informed and current as possible on the impact of these changes.
  • As they changes first become enacted, it will be vital to utilize Lenders & Closing Attorneys whom you know, love, trust & have a good relationship – especially the Maximum One Affiliated Closing Attorneys & Lenders
  • Remember that PATIENCE is a virtue!

Links to More Information:

Terms & Definitions

Loan Estimate TImeline & What Defines Loan Application

How to Count 3 Days

Sample Closing Disclosure

Sample Seller’s Closing Disclosure

Previous MX1 Video with Additional Information

NAR Video: TRID

NAR Information: Know Before Owe

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Tag Cloud

%d bloggers like this: