Market Share Report – July 2015

We?re now less than two months from implementation of the Truth?In?Lending and RESPA integrated?disclosures (TRID). We?ve carefully studied the rule. We?ve carefully considered how this will affect our?processes. We?ve upgraded our software. We?ve tested our software. We?ve waited for a software patch?to fix the bugs. We?ve tested the software again. We?ve started training our team. We?ve breathed a?sigh of relief when the implementation date was pushed back to October 3rd. Rinse . . . repeat.

Clearly, there?re many important things that we all must do to be ready for TRID implementation. But?what is the most important thing? Process changes more than anything else are people changes. Our?teams need to learn new ways of accomplishing the same tasks in order to have a successful closing.?(Remember I stated in June that I refuse to use the word consummation!) So with all the changes, what?is the most important thing that each of our teams need to do? For me, the most important thing for my?team and my clients and especially the buyers and sellers is to change their mental focus from the?closing date to the disclosure date.

In the pre?TRID world, we pick a closing date and everyone in the process works to get their piece of the?transaction done in time for the closing. Frenzied activity takes place in those final 48 hours to enable a?successful closing. Appraisal questions get answered. Credit reports are updated. Underwriter concerns?get addressed. A lot of things happen because we?re targeting a closing date.?We need to start speaking specifically about the disclosure date and not focus on the closing date.

Instead of ?when is it closing?? we need to be asking ?when are we disclosing?? Instead of setting time?lines backwards from the closing date, we need to measure backwards from the disclosure date. When?we review a purchase agreement, we need to circle the disclosure date on the calendar, not the closing?date. If we meet the disclosure date, everything after that will likely happen smoothly and on time. And?after all, that?s the purpose of TRID anyway, isn?t it?

Let?s stop telling the appraiser, the inspector, the title company, the lender or the realtor to get tasks?completed because ?it?s closing two weeks from today.? Let?s tell them to get things done because??we?re disclosing a week from Monday.? It?s a mindset. If we talk in terms of a closing date to our team?or service providers, they need to do a mental calculation as to what that means for their time line and?their action items. If we talk in terms of a disclosure date, we?ve already done the calculation for them.?They don?t have to think about it as much and can get on with meeting that timeframe.

Insert ?disclosure date? in your transaction vocabulary in place of ?closing date.? For me, that?s the?most important thing.

~John Bethell