How is TRID Faring?
It has been a month since the new rule TRID was officially implemented. How is the industry faring since that time?
The TILSA-RESPA Integrated Disclosure rule is now in full affect in the housing market. Lenders have been required to adopt this new process doing business with the new disclosures for approximately one month now, since October 3, 2015.
Initially, mortgage applications saw a dramatic decrease within the first week of implementations as lenders and originators adapted to the new rule thereby slowing down the process. However, despite this decrease in applications, no major issues regarding the adoption neither of this rule nor of implementation on the lenders side hit the news.
Additionally, since the implementation, a grace period has been formally acknowledged in order to give lenders the time they need to completely comply with this new rule both technologically and administratively. As long as a lender can show a good faith effort in complying and adopting TRID, they will be granted a grace period into early 2016.
TRID was a major overhaul to systems and processes in regards to mortgage applications and lending. While the tension was high leading up to the official implementation date, it appears the transition is going smoothly. Being granted a grace period alongside the implementation occurring in relatively quiet months for the housing market seem to have made the transition easier. Stay tuned for more news regarding TRID.