One of the largest purchases a person makes in their lifetime is a home. Be it a small condo or a house in the suburbs or a townhome in the city, for most consumers it is generally a time filled with excitement and anxiety.

The Consumer Financial Protection Bureau, or CFPB, is an agency of the Federal government that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. One of the newest rule changes issued by the CFPB is the creation of TRID. TRID is a greatly abbreviated title for the:

TRID graphicThe new integrated disclosures do a great job of helping a home-buyer understand every cost that goes into their new mortgage. There are two new disclosures, the Loan Estimate, and the Closing Disclosure. The Loan Estimate is intended to give consumers more helpful information about the key features, costs and risks of the loan for which they are applying. The Closing Disclosure is intended to reduce surprises regarding the amount of cash borrowers will need to bring to the closing table. Both new forms are designed to be clearly understood by the consumer. Plain language is used and the most important information, such as the interest rate, monthly payments and the total closing costs, are highlighted and easy to find. The forms also include the contact information of the lender, real estate brokers and closing agent.

The CFPB has also put out new rules in order to give consumers more time to review all these disclosures related to their transaction. Generally, the Closing Disclosure will need to be completed six business days prior to closing the loan. What this means to you is, it may take longer to close a mortgage loan than it has in the past.

FirstBank is working hard to communicate with all the real estate professionals and title insurance providers in our markets to ensure that everyone understands the many changes that are coming this fall. Over our history, more than 25,000 customers have trusted us to provide their mortgage loan. TRID will make our processes and forms different, but FirstBank’s core values of honesty and integrity will always be the same.

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