TRID: A Year Later
The TILA-RESPA Integrated Documents (TRID) or Know Before You Owe rule went into effect on October 3, 2015. What’s happened since? The National Association of REALTORS® (NAR) has released a report that details the new closing process since it went into effect.
Executive Summary
- Delayed transactions fell from 10.4% to 8.5%, but cancelations edged up slightly from 0.6% to 0.7%.
- 45.6% of respondents had problems getting closing disclosures down from 54.5%.
- However, REALTORS® were more likely to request closing disclosures from title agents than lenders in the 3rd quarter, especially REALTORS® with greater transactions volume.
- Delayed and canceled transactions cost consumers $410 and $226 on average, respectively. Rental and deposit expenses as well as lost vacation time accounted for most expense.
- Errors identified on CDs rose from 43.3% to 50.6%. Missing concessions and incorrect names or addresses were the most frequently cited errors, but incorrect fees, commissions, and taxes were also reported.
- Large retail banks were far more problematic than small lenders, mortgage bankers, and non‐banks.
- REALTORS® noted no change in lenders’ willingness to share the closing disclosure following the CFPB’s clarification on CD sharing in late July of 2016. Legal requirements and consumer privacy were most frequently cited when sharing was refused.
What REALTORS® Said
- “We are creatures of habit and hate changes. Once I had about 3 closings under TRID, it all was like my first closing 13 years ago. I don't see a problem now...”
- “In my opinion the TRID guidelines have reduced the communication between lenders and Realtors and it feels like a push to keep us out of the process…”
- “I worked 23 years building strong relationships and this new TRID experience has removed me from a lot of the process making me feel my relationships are suffering as a result. The real estate industry, on whole, is suffering from external influences and the client is ultimately the one who loses that great service.”
- “My clients often got screwed by their lenders before TRID. They paid outrageous loan fees. This has dropped significantly”
- “Its horrible. Very confusing for the client when they are given various estimates throughout the process. Also, how can us real estate agents protect our clients when we have the ability to see the closing disclosure taken away?”
- “Most of the problems come from agents and banks that are unwilling to share the information because it is "illegal". I spend a lot of time arguing that it is not, buyer agrees to share it in contract, vs bank and other agent saying it can not be shared.”
- “It pays to have very strong LOCAL title and lending strategic partners and be honest with buyer if they have decided to use a large lender or out of town title and the issues that we have experienced in the past. Most every time when they decide to go this route, at the end of the transaction, they say they should have listened.”
