How Will New TRID Changes Affect Your Roseville Home Purchase?

Looking to buy a Roseville home? Get a full Home Search

Selling your Roseville home? Get a free Home Price Evaluation

Today I have Marc Brinitzer with me, and he's going to explain some important changes that the real estate market will be experiencing this year.

On October 3rd of this year, the real estate market saw some big changes. Why is this?

It's because of changes coming to the TILA-RESPA Integrated Disclosure (TRID), and they will affect everyone involved in real estate, from consumers to Realtors to lenders. The Consumer Financial Protection Bureau (CFPB) issued a final rule amending regulations in the Truth in Lending Act as well as the Real Estate Settlement Procedures Act.

So, what does this mean for you? The TILA-RESPA rule consolidates four disclosures for closed and credit transactions secured by real estate property into two different forms.

One of these forms is a loan estimate that must be delivered or placed in the mail no later than the 3rd business day after receiving the consumer's application. A closing disclosure must be provided to the consumer at least three business days prior to consummation.

These new disclosures must be provided by a creditor or mortgage banker that receives an application from a consumer for a closed end credit transaction. However, creditors will still be required to use the current Good Faith Estimate, HUD 1 and Truth in Lending forms for applications received prior to August 1, 2015. After that date, these forms will no longer be used.

The TILA-RESPA rule includes some new restrictions on certain activity prior to consumers receiving the loan estimate. These restrictions took effect on August 1, 2015, regardless of whether an application was received on that date. These restrictions include imposing fees on a consumer before the consumer has received the loan estimate, or requiring submission of documents verifying information related to the consumer's application before providing the loan estimate.

Please don't hesitate to contact us with any questions about this issue. We understand that it may seem a little confusing or overwhelming. We would be happy to clear up any misconceptions that you may have!

What Do We Know About the Shifting Market?

Looking to buy a Roseville home? Get a full Home Search

Selling your Roseville home? Get a free Home Price Evaluation

Over the last few months, we have seen prices stabilize and sales decrease. We are in the midst of a shift, from a strong seller's market to a more normal, balanced market that you would expect to see this time of year. In our opinion, there are two major reasons for the shift.

The first is affordability. The housing affordability index has gone from 67% to 44% in Roseville, and we've seen similar shifts in communities across the area. The housing affordability index refers to the percentage of people that can afford a medium priced home within a county. The drop in index really means that there are fewer buyers on the market than there have been.

The second cause of the shift is the increase we've seen in new construction. In Roseville alone, we have 8 major builders and 18 new home communities. This new construction is competing for buyers with resale homes, which will cause prices to flatten out and remain stable.

With all that being said, let me tell you right now that the sky is not falling and it's not time to panic. The economy is good, interest rates are still low, and current lending practices are fundamentally sound.

The decision to buy or sell should be based on your personal needs and wants vs. what the market is actually doing. If there is anything we can do to help you out, or any questions we can answer, don't hesitate to reach out.