“From my point-of-view getting the closing documents out is worrying; TRID could delays closing and result in a domino effect with buyers and sellers,” David Hill, a loan originator with Independent Mortgage, told Paydayloans247. “I’m telling clients to try not to have multiple closings at the same time.”
Hill says he is advising clients that selling and buying simultaneously will be difficult due to closing delays; he is telling them to prepare to place belongings in storage units while waiting for deals to finalize.
Closing delays were identified as one of the potential major issues that could result from the recently passed TRID rule.
“The days of the 30-day close are pretty much over,” John Linnington, president of The Title Company of Jersey, told local New Jersey publication, Press of Atlantic City, in late September. “Forty-five days would be about as fast as you could do it, and a more realistic time from contract to close is going to be about 60 days.”
There are things brokers can do to prepare themselves, and their clients, however.
The key is to manage client expectations, argues Steve Fingerman, president of E-Loans Mortgage.
“Make sure everyone in the transaction is aware upfront of the changes in timeline,” Fingerman told real estate website inman. “Figure about 15 days added to the closing date, and depending on the interpretation from the lender, it could be even longer.”
Brokers feared TRID would result in delayed closings, and industry players are echoing those concerns.