The Know Before You Owe Act is a relatively new regime that applies to loans granted after October 3, 2015. It comes from the Consumer Protection Finance Bureau and needs nearly 2,000 pages to achieve its admittedly solid goal: to simplify the credit opening process for mortgage consumers. According to a report on CNN`s website, lenders have spent billions of dollars updating their systems to ensure compliance with the law, so consumers hope to see a streamlined and easier to understand process. But 90 days after the new law, what is the landscape of the end-of-year table where the lawyer is usually located? Surprisingly, the situation is pretty much the same, with a significant change in purchase and sale bills that all home buyers should be aware of: the TRID Rider. If you are buying a condo, one of the documents you must sign as part of your loan is a “Condominium Rider”. This rider is an attachment to the document that is registered in the land registers to secure your loan. In DC, Maryland and Virginia, the registered document is called an act of trust. In Florida, it`s the mortgage. I would call them both `instruments of security`. The note is the loan agreement and defines the terms of the loan. The note contains: address of the property, loan amount, lender, interest rate, date on which the first payment of the new loan is due, where payments are to be sent, monthly payment, percentage calculated by the lender if the payment is delayed by more than 15 days.
Make sure borrowers understand these terms and approve them before signing this document. However, the path to the closing table has changed a bit for the legal team that helps buyers. There is now a requirement that the lender provide its client, three days before closing, with the exact number of dollars it must bring to the closing table. Faced with the new 3-day disclosure rule, lawyers from all over Massachusetts have agreed almost everywhere to add the “TRID Rider” to all purchase and sale contracts. The TRID Rider anticipates the lender`s disruptions with new maturities and allows extensions of the closing date so that the lender can comply with the law. TriD is the insider acronym for “TILA and RESPA Integration Disclosure” and reflects the regulators` intention to eliminate two old rules and replace them with a new law. Insiders love using acronyms, and TRID is an acronym that contains other acronyms, so it really stood out! This document changes the priority of existing pledge rights on the property, such as.B. an existing HELOC mortgage or a second mortgage, and ensures that the new instrument/mortgage is placed in the first place on the title to the property. There may be several subordination agreements.
This document must be certified. As a general rule, this document is accompanied by notarized signatures of the entity that accepts the terms of the subsecation agreement. Notification of the borrower`s signatures must also be concluded on the contract. Closing Agent must confirm the identity of each borrower with an acceptable form of valid ID card. Borrowers must sign and the graduation agent must complete and sign the section below of the “Important Applicant Information” form below. It is possible that not all the documents listed below are included in each credit package; It is also possible to include other documents that are not described below. The collection of borrowers` mortgages and related responsibilities (for example. B the payment of a trust for property tax and insurance, the enforcement of defaulted credits and the transfer of payments to investors).