Home Financing Changes

by Maribeth Lynch

Thrive Real Estate Specialists is proud to announce that Owner/Broker Maribeth Lynch, has been nominated for the 2024 Realtor of the Year Award by the Realtors Association of Central Massachusetts (RACM). This esteemed recognition highlights Maribeth’s dedicated service to the Association, her community, and the real estate industry at large.

The Realtor of the Year Award celebrates a REALTOR® for dedicated service to the Association, the community, and the real estate industry and who exemplifies the highest standards of professionalism, integrity, and community involvement.

Maribeth Lynch’s nomination is a testament to her unwavering commitment to these values and her significant contributions to the real estate sector. The successful candidate will represent the REALTOR® Association of Central MA at the MAR REALTOR® of the Year and Professional Awards Banquet.

“Being nominated for the Realtor of the Year Award by RACM is an incredible honor,” said Maribeth Lynch. “I am deeply committed to serving my clients and community with the highest level of professionalism and care. This nomination reflects the collective efforts of the entire Thrive Real Estate Specialists team, and I am grateful for their continuous support.”

Maribeth Lynch has been a prominent figure in the Shrewsbury real estate market, known for her exceptional client service, in-depth market knowledge, and passionate advocacy for community development. Her leadership at Thrive Real Estate Specialists has set a benchmark for excellence, fostering a client-centric approach that prioritizes personalized service and ethical practices. She also serves as an Alternate Director on the RACM Board.

The winner of the 2024 Realtor of the Year Award will be announced on June 20, 2024. For more information about the Realtors Association of Central Massachusetts and their awards, please visit RACM’s official website. To learn more about Maribeth Lynch and her work at Thrive Real Estate Specialists, visit Maribeth’s profile.

About Thrive Real Estate

Thrive Real Estate Specialists is an independent real estate firm specializing in local expertise of the communities they serve as well as quality, personalized service rather than a “one-size-fits-all” approach to real estate. They represent both buyers and sellers of homes for sale in Shrewsbury and Central/MetroWest areas of Massachusetts. For more information, please visit www.thriverealtors.com or contact broker-owner Maribeth Lynch.

Buying a Home in Massachusetts

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!

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