A recent survey conducted by the National Association of Exclusive Buyer Agents (NAEBA) shows that some real estate closings are already being affected by the new “Know Before You Owe/TRID” regulations that went into effect October 3. The survey went out to brokers across the United States and nearly 20% stated they are already seeing issues, mostly delays in closing.
According to one respondent, “Lenders are almost all asking for 45 days to closing vs. previous 30 days.” Another respondent stated, “We’ve been advised to prepare for further delays until everyone has more experience with the new CFPB/TRID Regulations.”
The study also showed that most NAEBA buyer agents are educating themselves about the new regulations. 72% of the buyer agents that are part of the NAEBA Referral Service stated that they have attended a class or workshop on the new regulations in order to better assist their buyer clients. “We wanted to make sure any agents to which we are referring consumers are informed and can help buyers plan for any delays,” states NAEBA Referral Service President Ken Reid. To find an agent who is part of the NAEBA Referral Service, consumers can visit www.naeba.org.
“At NAEBA, we applaud the Consumer Financial Protection Bureau for its efforts in educating consumers and giving them the tools they need to understand their mortgage,” states Dawn Rae, NAEBA President. “We believe, though, that this survey shows that consumers should also be prepared for real estate transactions to take longer to close at least in the near future as lenders adjust to the new regulations, and that it’s important to have an Exclusive Buyer Agent on their side to help them navigate through this complicated process.”
The National Association of Exclusive Buyer Agents (NAEBA), created in 1995, is an organization of companies dedicated to representing only buyers of real estate. NAEBA member brokerages do not list homes for sale and never represent sellers. This restriction to one side of the real estate transaction avoids conflicts and ensures that the interest of the home buyer is protected at all times from house-hunting and negotiation to inspection, financing and closing.