Beyond the Chatter: TRID’s Real Impact on Realtors and Lenders

Beyond the Chatter: TRID’s Real Impact on Realtors and Lenders

Tired of TRID talk? As a DC Metro area title insurance company, we understand the scope and severity of TRID—but we’ve decided to hold our commentary until the dust settles. Now that it’s been several months since implementation, we’d like to give you a summary of where we’re at.

In October 2015, the mortgage industry saw a major shakeup with the debut of the Truth in Lending and Real Estate Settlement Procedures Acts—together known as TILA-RESPA Integrated Disclosure or TRID. These statutes created a whole new framework of transparency considerations for lenders and loan officers, with new forms, processes, and data points along the way.

The Ruling

TRID’s ultimate goal is to allow borrowers to fully understand the terms and conditions of their loan. The changes to settlement procedures on the lenders’ end are extremely complex and take up nearly 2,000 pages. Documents which were typically used in the past — HUD-1 closings and Good Faith Estimate forms — have been streamlined into two simple documents, a Loan Estimate and Closing Disclosure.

Instead of having to sort through the complex terminology of mortgage financing, consumers have all the data clearly and accurately presented before the sale is finalized. This means that lenders and other mortgage professionals have needed to readjust their workflow — which has caused some concern that the rule is delaying or even preventing closings.

The Impact

Delaying the close of a property sale is not as simple as shuffling the signing to a different day. Failing to close on the originally scheduled date can be massively costly for lending entities, given the time that it takes to re-check and re-authorize all the information. Delayed closings don’t just affect lenders; they also inconvenience buyers and sellers and deprive realtors of business.

Now that we’ve seen some extension of closing times, the lesson for lenders is simple: proactive communication with title agents and brokers are the keys to a successful transaction. Different service providers have different approaches to estimate and closing calculations, which makes communication from the get-go absolutely essential. When everyone is on the same page, any disruptions to document flow or timeline can be identified and remediated before the deal itself is affected.

The Timeline

A recent survey of over two thousand real estate professionals indicated that October closings saw “no significant effect” from TRID regulations. However, since closings often take thirty to forty-five days to complete, that survey may not be the most accurate barometer of TRID’s success.

Champion Title & Closing the Deal

As your company adjusts to changes, allow Champion Title to support you every step of the way. We offer top-notch services in title insurance, title services, and closing support. If you’re interested efficiency, accuracy, and reliability in Maryland, Virginia, or Washington, DC title insurance, visit our homepage today!

Leave A Comment

Your email address will not be published.