Industry NewsMortgage

TRID is causing problems, but not paralysis

Two months into the new mortgage disclosure regime, real estate industry assesses how the complex regulations are affecting mortgage applications, closing times and relationships with industry partners
  • As predicted before implementation, TRID appears to have delayed closings.
  • Real estate agents and brokers aren't getting access to the Closing Disclosures sent to buyers, and brokerage forms attempting to give agents permission to access the Closing Disclosures are not always up to snuff.
  • Still to be determined is the extent to which the CFPB will investigate and prosecute anyone who may have run afoul of the new regulations.

When the real estate industry was preparing for TRID -- the new set of disclosure rules outlined by the Consumer Financial Protection Bureau (CFPB) -- closing delays were the biggest industry concern. And although the delays have been widely reported, there's something else real estate agents and brokers have discovered: They aren't getting access to the Closing Disclosures sent to buyers, and brokerage forms attempting to give agents permission to access the Closing Disclosures are not always up to snuff, according to the lenders receiving them. We’re now more than 60 days post-TRID (TILA-RESPA Integrated Disclosures), deep into the new mortgage closing processes. Despite the CFPB requesting that everyone adopt the term “Know Before You Owe” rule instead, TRID has stuck like glue -- and it has fundamentally altered the way closings are conducted. Hiccups, not devastation “Reaction has been extremely mixed,” said Marx Sterbcow, managing partner in the New Orleans la...