Mortgage Info for Homes and Small Business Financing

Tag Archives: Regulations

One Aspect of TRID Is Working Well

TRID is working!  The TILA RESPA Integrative Disclosure requirement which was ushered into existence last October is having at least one desirable affect.

TRID is workingWhen TRID was first announced by the CFPB, there was much gnashing of teeth by mortgage professionals, Realtors and those in the Title industry.  And as with most new processes, there was an adjustment period after implementation which included occasional delays, a few snafus and more than a couple of adult beverages being consumed.  Yet, after all is said and done, it seems to be working nicely.

A new study conducted by the American Land Title Association shows that there’s a jump in the number of homebuyers who actually take time to review their closing documents.   If you require borrowers to sign off upon delivery of the Closing Disclosure so that they may proceed to settlement, many will take a look at the attached documents.

TRID is working as designed

The study bears this out “… as 92% of surveyed homebuyers are taking time to review their mortgage documents before the closing.  This compares to only 74% of consumers who reported having reviewed their documents prior to the new regulation.”

I can’t say this for everyone but most of the practitioners I work with including myself would prefer to review and clarify any and all issues prior to sitting down with the client and signing the final documents.  In this regard, the 3 day waiting period is working well.

The ALTA study did find that TRID implementation was the cause for some closing delays – but the survey results indicated the impact wasn’t as earth-shattering as once believed.  Perhaps a dirty little secret of the industry is that prior to TRID implementation, only 77% of closings took place on time.  With TRID in effect, that dropped to 74%.  That’s a mere 3.9% reduction in efficiency for closing as originally scheduled.  With closing delays for 23% of transactions prior to TRID, the resultant reduction seems minuscule.

Settlement agents in the survey reported that the top reasons for rescheduling a closing to another day were issues with lender underwriting, a delay from the lender and/or an issue with the three-day rule.

Many delays can be avoided if the borrower is aware of the strategies involved in staying approved through closing and funding once the conditional commitment has been delivered.



Mortgage Reform and Anti-Predatory Lending Act

The failure of the subprime mortgage market is one of many causes of the overall economic crisis.  It was inevitable that mortgage lending would be a subject of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Mortgage Reform and Anti-Predatory Lending Act The Dodd-Frank Act is a massive piece of legislation, well in excess… Continue Reading

The Disposal Rule | Your Privacy in Settlement and Servicing

The Disposal Rule In 2003, Congress made amendments to FCRA under the Fair and Accurate Credit Transactions Act (FACTA).  One of the amendments was the creation of a mandate for the proper disposal of consumer information derived from consumer reports.  FACTA directed the FTC, the federal banking agencies, and the NCUA to promulgate rules for… Continue Reading

Privacy in Solicitations and the Telemarketing Sales Rule

Privacy in Solicitations Telemarketing is one method that businesses such as mortgage brokers and lenders use in the solicitation of business. The origination of many mortgages begins with a sales call.  However, within the past few years, the enactment of new federal and state laws and regulations has created many restrictions and prohibitions for telephone… Continue Reading