I attended a TRID training this week. TRID is the new process that mortgage brokers/bankers have to use that will replace the HUD-1 (for non-cash buyers) effective October 1. During the presentation, the lenders said that because of the new timelines 30 day closings will be a thing of the past. They also asked that real estate agents take a very active role in having their clients stay "on top" of the process and have clients call the lender or e-mail to acknowledge receipt of loan documents etc. I know that some folks buy using hard money and want their flips to close ASAP. Just an FYI.
Teresa, I have attended similar seminars that have this same type of doom and gloom mentality, and while I do believe that because disclosures will potentially, and initially more than likely will, slow things down with the mandatory 3 days to present to buyers and for them to sign off on them, I do not believe that ultimately 30-day closings for non-cash buyers will be a thing of the past. I believe that title and escrow companies are just doing their diligence in managing expectations up front so as to keep clients happy if the 30-day close is not as common while everyone adapts to and understands the new process. In the end, everyone involved in the transactions will want to have things streamlined and closed as quickly as possible, so making sure that attention to detail is achieved to protect consumers, in this case primarily the buyers, as the Dodd Frank Act seeks to do, will be a priority to keep things moving quickly, but within the new parameters. Just my opinion, and I know that you and I both want to keep the 30-day closes around!
I agree Teresa....right now it's difficult to get a 30 day closing in Texas with institutionally financed buyers and the new rules will extend the closing times from between 45 to 75 days. Lenders will likely continue to over-promise and under-deliver once the changes are in place on Oct. 3rd, but these new rules will no doubt impact closing time frames in Texas.
I wonder if sellers will start putting into their MLS listing agent comments, no buyers with certain types of financing. IE not liking FHA financed offers etc.
In the end, this will open up new compeition opportunities for highly automated front end shops. I've heard of shops offering 10 day close etc, largely undelivered. But like seat belts and catalytic converters the auto industry did not blow up either.
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