TRID (TILA-RESPA Integrated Disclosures) will become effective on August 1, 2015, and under the rule, the Owner’s Title Policy has specific calculation and disclosure requirements. It is important to start the dialogue with your Realtors® now regarding the calculation and the disclosure of the Owner’s Policy.

The rule states that the owner’s title insurance premium must be calculated by using the full owner’s title insurance premium, adding any simultaneous issuance premium for lender’s coverage, and then deducting the full premium for lender’s coverage.

The charge to the Buyer will be the full premium for the lender’s title policy, and the charge for the owner’s policy will be the reduced charge of owner’s title premium + simultaneous lender premium – full lender title premium.

The official interpretation can be found here:

http://www.consumerfinance.gov/eregulations/1026-38/2013-28210#1026-38-g-4

Start thinking about the upcoming scenarios that you will have to deal with after August 1, 2015, so you can be prepared, and so that you can present yourself as the true knowledgeable professional that you are.

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