WHAT IS THE "KNOW BEFORE YOU OWE" RULE AND HOW DOES IT AFFECT MY HOME LOAN CLOSING?
On October 3, 2015 the Consumer Financial Protection Bureau (CFPB) implemented the “Know Before You Owe” mortgage initiative, also known as the TILA-RESPA Integrated Disclosure (TRID) rule. This set of mortgage loan regulations was created in an effort to make the homebuying process less complex and more understandable for potential homebuyers.
Prior to the “Know Before You Owe” mortgage initiative, homebuyers were required to complete four separate disclosures prior to their closing. Under the new regulations, homebuyers will receive only two disclosures – the Loan Estimate and the Closing Disclosure. These documents were designed to help homebuyers navigate the homebuying process with more clarity.
The “Know Before You Owe” requirements impact all aspects of the loan process, from how loan applications are taken to the way real estate closings occur. Because of this, the timing of various steps in the loan process is critical. Now more than ever, it is important to set proper expectations regarding the length of time for the mortgage process when purchasing your new home.
Waterstone Mortgage has created various tools and tips to assist you through the process. The proprietary loan calendar tool on this page allows you to create a custom loan process schedule. Simply enter your home loan application date and desired closing date, and the calendar will automatically fill in all the important loan milestones (along with their anticipated dates). It’s an easy and useful way to get started in the home loan process!
The “Know Before You Owe” mortgage initiative was created to make the mortgage process clear and uncomplicated. At Waterstone Mortgage, we support this initiative by taking the confusion and anxiety out of the mortgage process, so our customers have a clear path to their dream of homeownership.
“In my opinion, TRID is the biggest opportunity in the last 20 years for loan originators to gain market share from their competitors. While many companies are scrambling to implement TRID best practices, Waterstone Mortgage has been implementing them for 15 months. Every department, from sales and operations to IT, is way ahead of the curve. To most companies, TRID is creating stress; for us, it’s creating opportunity.”
- Mike Smalley, Waterstone Mortgage Branch Manager, Winter Park, FL
"The first thing that drew my team here was the operational superiority. We are excited to be in a company that has focused so much effort and so many resources to prepare for TRID. Waterstone Mortgage wasn't just ready for TRID; we were ready to use TRID as a competitive advantage.”
- Jeff Goddard, Waterstone Mortgage Branch Manager, Atlanta, GA