How Has Tighter Industry Regulation Changed the Home Buying Process?


In place for over a year now, the TILA-RESPA Integrated Disclosure (TRID) rule set forth by the Consumer Financial Protection Bureau has certainly impacted the process of buying real estate. The intent of tightening regulations within the mortgage industry was meant to streamline and simplify the process for home buyers, while reducing the paper count and confusion of residential real estate purchases in previous years.

Here’s a closer look at how stricter regulation in the mortgage industry has affected the process of buying a home.

From the Home Buyer’s Perspective

  • Changes to settlement forms. Lenders are now required to provide more detailed, thorough information surrounding the mortgage loan to home buyers prior to closing, which is largely accomplished through the Closing Disclosure Form (replacing the HUD-1). Such changes better enable consumers to understand their risks and costs associated with taking on a mortgage.
  • Enhanced awareness of mortgage terms. Though the pre-approval process is relatively the same, borrowers are now more aware of the terms of their mortgage, generating less confusion and fewer surprises at the closing table. TRID mandates that home buyers receive a copy of the Closing Disclosure Form for review at least three days prior to closing.
  • Time to settlement. With TRID, the timeframe between contract and close has increased slightly, though overall, no major impact has been experienced. In general, purchasers have fewer questions at the closing table resulting from enhanced understanding of mortgage details.

Thanks to TRID, the explanation and interpretation of often complicated mortgage information has rendered residential real estate purchasers better informed about their mortgage responsibilities. In fact, all parties involved in the real estate transaction now typically experience a congruence throughout the process, right through to the day of closing. For questions or concerns regarding real estate settlement, contact Linear Title & Escrow at (757) 340.0340 today.



The Year in Review



As we begin the final countdown to the year’s end, it’s always interesting to reflect on how things have changed over the past 12 months. This season kindly offers a chance to celebrate successes, milestones and positive experiences, or strengthen our resolve and hope the upcoming year brings the progression and prosperity we seek. The title industry has certainly experienced its share of changes in 2016. Here’s a glance at the year in review from a settlement standpoint.

Changes 2016 Brought to the Settlement Process

  • First Full-Year of TRID in Effect – The Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure Rule (TRID) simplifies consumer disclosure information by improving readability of content regarding terms of impending real estate transactions. The Consumer Financial Protection Bureau requires that lenders submit the Closing Disclosure Form to homebuyers three days prior to closing.
  • February 23, 2016 – The American Land Title Association/National Society of Professional Surveyors Survey Standards is enacted, bringing forth greater utility and clarity of survey items in terms of how they are displayed on the survey form, and the content of items included within the survey. A list of revised survey form topics can be viewed here.
  • March 21, 2016 – Foreclosure Relief and Extension for Service Members Act passes, extending the one-year foreclosure protection for military personnel through the end of 2017 (part of the Service Members Civil Relief Act).
  • July 1, 2016 – House Bill 393 (General Assembly of Virginia) takes effect, delegating that the designated license producer of a title agency must be a director, officer or employee of said company, dissolving the practice of an independent contractor fulfilling this role.


As we look forward to a successful 2017, we welcome any changes designed to make the entire settlement process more streamlined, transparent and ultimately more efficient for all parties. The team at Linear Title & Escrow remains committed to providing clients with the highest level of service in the industry, and wishes you and yours a very healthy, prosperous New Year.