Understand the “Know Before You Owe” Mortgage Disclosure Rule (TRID)

The Consumer Financial Protection Bureau (CFPB) has some interesting information on the process of owning a home that every home buyer and real estate broker/agent should be aware of. In addition, they’ve also developed a mortgage initiative (also known as “Know Before You Owe”) which was designed to help consumers understand their loan options, shop for the mortgage that’s best for them, and avoid costly surprises at the closing table.

knowbeforeyouoweThe mortgage process has changed. With the “Know Before You Owe” mortgage disclosure rule, homebuyers will see new mortgage disclosure forms and have time to review their paperwork before signing. To help you transition to these changes and to ensure smooth and on-time closings, the Consumer Financial Protection Bureau has created a guide just for real estate professionals which you can download here.

As your clients’ trusted resource, it is important that agents and brokers understand these changes and can guide clients through the home buying process. The TILA-RESPA Integrated Disclosure rule is part of the larger “Know Before You Owe” mortgage initiative. The rule consolidates some of the required loan disclosures and changes the timing of some of the activities in the mortgage process. It will go into effect October 3. This guide from the Consumer Financial Protection Bureau will help to ensure smooth and on-time closings for both real estate agents and their clients.

The National Association of Women in Real Estate Business have also provided some interesting information as a direct outreach with the CFPB. As you may know, they’ve just launched their update to the “Owning a Home” suite of tools and resources, and they’ve updated their “Know Before You Owe” mortgage initiative page to help consumers navigate the mortgage process. Real estate professionals play a key role in a home buyer’s experience, so it’s important everyone understands these resources and information to help you communicate with your colleagues and clients. Below you will find the latest and hottest TRID update on the “Know Before you Owe” mortgage initiative as well as links to a variety of resources to share:

In short, the “Know Before You Owe” mortgage initiative was designed to empower consumers with the information they need to make informed mortgage choices. The goal of these TRID resource materials and guides are to educate all real estate professionals and clients on the new disclosures so that everyone understands the new mortgage disclosure rule. If you should have any questions or need clarification on any of this, we at All Vegas Valley Realty are happy to assist. Please contact us online or call us directly at 702-541-8300.