TRID and Inflexible Sellers -- Deal Blowing Up

30 Replies

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This just shows another example of the cost of regulation. The lender and or title company should have started preparing a few days earlier. That is not the sellers fault. 

I am sure a lot of deals are going to blow up due to these new regulations. Another example of government overreaching. The very consumers who it is intended to protect are going to lose deals. 

The solution as a buyer is to have an add addendum extend up to 5 days to comply with TRID regulations.

I would talk with your agent/attorney.  I am a managing broker in 2 states and both of them have mortgage contingencies which state if you cannot get a loan by closing there is no default on your part and the EM is returned back to you.

I would also try and sen a email and have it forwarded to the seller.  Explain that this is not a delay caused by you, and that you are not using this as a tactic.  It is just a delay on the lender do to new regulations and they have to comply.  

@Brian Kraft   as it would happen I just took my NMLS state of ORegon CE class today all 8 hours our instructor was from Denver...

I was only half listening ( since I only do private stuff) But I thought they said it only applied to OO.. but of course if the secondary market wants it one way that's probably what needs to happen.

I also got an e mail from a closing I am funding in Alabama from the closing attorney who said she did not think we could make a Friday close ( all cash sale no Trid) because to quote her she said the whole closing industry is all fubared right now with TRID and in a state of confusion.. Her words.

as other have mentioned many states have auto extensions in the contracts for funding delays.. Oregon does NOT you either close on the day or your done and you lose your EM.

If you don't want to go the HML route.. give me a call I will put up the 200k you buy it back from me in 10 days or so... Nominal fee would apply of course. But I can do this for you on Friday no sweat just need docs tomorrow and wire instructions and of course your 90k into the deal and a quick 10 minute once over from my end to make sure I am not buying a pig in a poke which I certainly don't think that's the case but you know .

hit me off line if you wish. 

Good luck with it.

It was only a matter of time. Hopefully DORA will address these issues in the new contracts... Just had my first TRID deal close on Monday. Pretty straight forward. That is why it is imperative to have a great LO.  

x2 on checking your origination date. TRID applies to loans originated on the 3rd or later. 

I'm guessing your buyer's agent didn't put in a clause relating to loan delays. I have some verbiage if you need it on the next one. 

Put the pressure on your lender AND agent. Good Luck!!!

Since I'm involved in this deal as well I thought I'd let you guys in on the punch line to the the story. The real reason it turned out the lenders were not in compliance w/TRID? They forgot that Veterans Day was a federal holiday and couldn't be counted in the waiting period...

(every time I think about it now I hear in my mind that cartoon soundtrack sound of a trombone going "WAA-whaaaa...")

@Travis Sperr stepped in and saved the day.

@Jay Hinrichs , thank you so much for your offer, you are a mensch.

Interesting, since the reg.s clearly state the financing of a non owner SFR or Duplex, are both exempt from TRID. One caveat I did read though, if this was a refi for these exempt property types, even a commercial property (which is exempt) "if the loan proceeds were to be used for a personal reason(not investment reason) then that loan would be subject to TRID.

@Wayne Brooks   sitting through my CE on veterans day with about 40 RMLO's and being bored to tears since I do only private stuff ... it was clear that these rules are interpreted many different ways. and each lender and closer has taken different steps.

this will all just have to flush out over time.