Real Estate: Don’t TRID on Me.

Posted By Cliff Tuttle | June 5, 2015

No. 1,169

Image: An imaginative ad for compliance webinars by elliemae.com

If it applies to you, you have heard plenty about TILA-RESPA Integrated Disclosure (TRID).  Be advised that you will undoubtedly hear a lot more before August 1 — the day of implementation.  And you have probably heard about the so-called grace period — whereby the feds at CFPB are giving lenders and closers a little bit of slack on the enforcement. Good luck on that.

This essentially completes the process, which has been going on for over twenty years, whereby ordinary real estate lawyers who do not work for lenders or operate settlement services have been systematically excluded from closing residential real estate transactions involving federally-related loans. This is too bad, because we lawyers know a few things about real estate law that non-lawyers don’t.

When CFPB came on the scene with the Obama Administration and started experimenting with combining disclosures under the Truth in Lending and the Real Estate Settlement Procedures Act, it expressed the goal of streamlining the real estate settlement process and making disclosures easier to understand and less complicated.  Guess what?

Aw shucks, you guessed!

Real estate settlements are increasingly focused on procedural and disclosure matters.  Thats the arena where lots of mistakes will be made. In a few years, issues regarding TILA-RESPA disclosure requirements, the new settlement procedures and the like will start flooding into court.  So don’t feel too sorry for lawyers.

That isn’t to say that an ordinary real estate lawyer can’t learn the new rules and play the game.  We can, but very few of us will.  Those who do will, of necessity, do little else and will be more than ever dependent upon well-trained staff, software and coordination with lenders.  Of course, there will still be cash deals to close as well as commercial and other non-residential closings.

That having been said, if you are eager to close residential loans, you need to start studying. Here are a few bulletins that my title insurance company passed along.

CFPB Information

Cordray-letter

Wells Fargo Settlement Agent Newsletter June 2015

Welcome

CLIFF TUTTLE has been a Pennsylvania lawyer for over 45 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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