TRID - One Year Later

Blog posted On October 20, 2016

On Oct 3, 2015 the Consumer Financial Protection Bureau implemented the “Know Before You Owe” rule known as the TILA-RESPA Integrated Disclosure Rule or TRID.  Lenders, realtors, settlement service companies, and other companies involved in the mortgage industry are well aware of the TRID compliance changes that shook the industry last year. 

In some cases, the simple form changes required major technology changes and process overhauls.  CFPD asserted that their intent was to help consumers “understand their options, choose the deal that’s best for them, and avoid costly surprises at the closing table.”  The most critical changes required by the new implementation of TRID compliance include the delivery timing of the Loan Estimate and the Closing Disclosure forms to borrowers.

In the year following TRID implementation, the housing industry had a more positive impression of it.  Pete Mills, senior vice president residential policy with the Mortgage Bankers Association said, “TRID was a massive undertaking from a systems and business processes standpoint.  Although many anticipated the rule would significantly disrupt the closing process for consumers, […] once it was implemented, lenders devoted major resources to overcome implementation challenges to make sure loans closed on time.”

In the year following the implementation of TRID, Ellie Mae reports that the time to close a mortgage loan has stabilized at an average of 46 days.  In general, the results have been positive as the housing market adapts to the new TRID rules and sees some value in it.  However, with any change in regulation adapting to a new process takes time and extensive resources.

Sources: HousingWire, Realtor.org