Since its implementation in October 2015, the TILA-RESPA Integrated Disclosure has faced plenty of criticism from bankers, agents and homebuyers who say the regulation has lengthened the closing process and caused other headaches, such as unexpected costs and fees.
STRATMOR, a strategic advisory and consulting firm that serves mortgage lenders, dedicated its latest research effort to examining the impact of TRID, six months out from its release. The “TRID — Impact and Experience Spotlight Survey” found that despite initial grumblings, the mortgage lending industry and homebuyers are adapting relatively well to the process, and even starting to find satisfaction with the disclosure.
Banks versus independent lenders
In the survey, 87 percent of respondents reported that their TRID implementation is fully or mostly complete. Moreover, only 1 percent of respondents said they are “way behind.”
Small and mid-size independent lenders were ahead of their larger counterparts in the process, with 72 percent and 80 percent of those lenders reporting full implementation, respectively. On the other hand, small and mid-size banks lagged behind by nearly 40 percent. Furthermore, 31 percent of banks said their experience with TRID was downright “terrible.”
“Implementing TRID has obviously not been easy for lenders” said Dr. Matthew Lind, Ph.D., STRATMOR senior partner and founder.
In addition to issues with implementation, lender back office fulfillment and post-closing costs have increased by an average of $209, and only 17 percent of lenders say those costs can be recouped through additional charges.
Accelerated speed and a silver lining
Despite the difficulties, lenders have found a silver lining through increased customer satisfaction.
According to data from STRATMOR’s MortgageSAT Borrower Satisfaction Program, customer satisfaction is at 91 percent — the highest rate since the program was started in 2013.
“However, TRID seems to be associated with a significant pickup in borrower satisfaction, despite somewhat slower application-to-closing times,” Lind said. “At the end of the day, improving the borrower’s experience is a main objective of TRID, and in an increasingly competitive origination market, it is also a primary goal of lenders as well.”
Lastly, STRATMOR reports the application-to-closing time is finally starting to rise back to pre-TRID levels.
