Home Financing Changes

by Maribeth Lynch

Home Financing Is Undergoing a Change

Maribeth Lynch, Thrive Real Estate Specialists

Just this week, the Consumer Financial Protection Bureau (CFPB) implemented a new mortgage regulation called TRID, and if you’re thinking about buying a new house, you’ll want to know what will change with this new regulation in place. Understanding the lingo involves decoding a lot of acronyms, but don’t let the jargon scare you! Let me help simplify it.

The new mortgage regulation, TRID, stands for TILA-RESPA Integrated Disclosures.

Disclosures are loan fee estimates provided to a borrower during the loan process. TILA-RESPA refers to the two federal statutes that have governed loan forms for more than 30 years. TILA stands for the Truth in Lending Act, and RESPA stands for the Real Estate Settlement Procedures Act. These two statutes produced closing paperwork with inconsistent language and confusing redundancies. TRID is designed to condense the paperwork into two new, more intuitive forms with clear language that a home buyer can easily understand.

Under TRID, lenders will now be required to provide borrowers with two new disclosures: the loan estimate (LE) and the closing disclosure (CD):

The LE, provided to the borrower three days after submission of a loan application, lays out the terms of the loan in whole dollar figures, with all fees alphabetized so that buyers can easily compare rates and fees among multiple lenders. The LE expires within 10 days unless the borrower decides to lock in financing. The LE also specifies whether any of the terms of the loan are subject to change after close.

The CD, provided to the borrower three days prior to close, reflects the actual charges attached to the loan rather than the estimated fees listed on the LE, so fee amounts are listed in more exact amounts rather than whole-dollar estimates. It also specifies how much cash is needed to close. Again, fees are specified in an easy-to-read alphabetized layout. If any of the terms of the loan do change after close, the lender is required to provide the borrower with a new CD within 30 days following close; any necessary refunds from the lender must be delivered to the buyer within 60 days following close.

So, as you can see, TRID is designed to protect consumers. Under TRID, the new disclosures help simplify the loan process for home buyers. Some industry professionals are actually starting to refer to it as the “Know Before You Owe” rule. TRID reduces the paperwork that a home buyer must sort through and makes the terms of the mortgage easier to understand. It also gives the buyer ample time to look over the CD in order to make certain everything is satisfactory with the final terms of the loan.

Some people are concerned that the stricter timeline required by TRID might delay closings or lengthen the loan process, but in reality, there are only a couple of circumstances in which the CD would have to be entirely rewritten, re-starting the three-day waiting period prior to close. TRID does not alter the requirements to qualify for a loan; home buyers are still going to require healthy credit and an attractive debt-to-income ratio to qualify for most loans.

Overall, I think that lenders, home buyers, and agents will adjust to the new regulations fairly quickly. If TRID does its job, we should see more transparency in the lending process, which should lead to fewer home purchases encountering last-minute snags.

Would you like to know more? Visit www.thriverealtors.com for more information!

“Anthony’s advice and assurances during these times helped us achieve another record-breaking year, states Maribeth Lynch, Founder of Thrive Real Estate and Lamacchia Realty REALTOR®.

“When the opportunity to merge with Lamacchia arose, the timing was perfect. We knew both our clients and agents would benefit from this partnership, allowing everyone to THRIVE. Having gotten to know the leadership team at Lamacchia has made our decision to merge with them an easy one. Our values are very much aligned, and we know that offering their robust marketing and training will benefit both our clients as well as our beloved agents.”

Along with Maribeth and Rick, five REALTORS® will join Lamacchia Realty, including Briana Willander, Ashley Davidson, Whitney Andrews, Mike Andrews, and Tracey Calo. REALTORS® of Thrive are like-minded professionals who work in unison and pride themselves on local knowledge and creative problem-solving, all for the benefit of clients.
As the broker-owner of Thrive Real Estate Specialists, Maribeth has been and will continue to be devoted to serving both her clients and her community with integrity, sincerity, and a can-do attitude. Her firm welcomes opportunities to give back and be charitable in meaningful ways and Maribeth believes in the importance of service. The Massachusetts Commission on the Status of Women selected her as a 2022 recipient of The Commonwealth Heroes Award, and she was a 2021 recipient of the Gratitude Project Award from the Massachusetts Association of REALTORS®.

“We are so happy to have Maribeth, Rick, and the rest of the Thrive group joining forces with the company, states Jackie Louh, Chief Operating Officer, Lamacchia Realty. “Maribeth is a well-known and respected Broker in Worcester County, and we are honored that she chose Lamacchia. We are excited to grow even more in that area and Maribeth is the perfect person to help us do just that!”

Maribeth along with the REALTORS® at Thrive Real Estate has been involved with many organizations over the years, most recently: REALTOR® Association of Central Mass- Committee Chairman, Broker/Owner Task Force, REALTOR® Association of Central Massachusetts- Board of Directors 2025, Shrewsbury Zoning Board of Appeals, Chairman, Shrewsbury Town Center Association, Founding Member, Shrewsbury Yuletide/Light the Commons, Committee Member, among many more. In addition to being involved, they also advertise and support the College of the Holy Cross where Thrive is prominently displayed on scoreboards and other places.

Lamacchia Realty’s already very aggressive marketing campaign in the region will dramatically boost the company’s market reach and help add more top-rated REALTORS® to the Shrewsbury office. The marketing plan features billboards on Route 9 and other major roadways, social media posts, postcards, newspaper ads, and much more.

All home buyers, sellers, tenants, landlords, REALTORS®, and other brokerages in the area should know that it is business as usual at the company. There will be no interruptions in service to any clients anywhere. In the weeks to come Lamacchia’s management team and staff will work with Maribeth, Rick, and all the REALTORS® at Thrive who are now Lamacchia Realtors to slowly implement Lamacchia’s suite of lead products, services, training, technology, and more.

This marks Lamacchia Realty’s ninth acquisition in Massachusetts in the past year with the prior acquisitions in Pittsfield with Home Sweet Home Real Estate, Dalton with Berkshire Dream Home, Easton with Briarwood Real Estate, Auburn with Emerson Realtors, Springfield with Sears Real Estate, Falmouth with Foley Real Estate, Fall River with Right Choice Real Estate, and Seekonk with Keystone Property Group. Lamacchia Realty is excited to bring on even more REALTORS® in MetroWest and Central Massachusetts markets in the weeks and months to come.

As a full-service, value-based brokerage, Lamacchia Realty’s mission is to empower its staff, REALTORS®, and clients to achieve success. The company provides unmatched training, systems, and technology, equipping employees with the tools they need to thrive and grow in their roles. Lamacchia Realty takes great pride in its strong culture of support, which has contributed to an impressively high retention rate. Culture is at the heart of the company, with every staff member and agent playing an integral role in maintaining and enhancing it, helping them continue to grow!