TRID Check In
Today marks the beginning of our newest adventure: housing in 2016. We recently reviewed the biggest news of 2015 and what we anticipate to come in 2016. Probably the biggest issue still rocking the industry is TRID. Let’s take a closer look at how the rule is shaking up the industry.
TRID has been in effect for three full months now. While it has delayed the loan process, it is also said that the new disclosures are providing consumers with the information they need to make a truly educated decision when buying a home.
However, the news that is really hitting the industry in regards to TRID is the fact that most companies are having difficulties fully embracing the new rule. The Consumer Financial Protection Bureau (CFPB) found in its audits that approximately 90% of recently reviewed mortgages contained TRID violations. While a grace period was approved while transitioning to this new loan process, this number clearly shows the complexity and difficulty this rule has brought to the industry.
Many are expecting the transition to get easier over time while some are noting that this high percentage is indicating the new system may not be what the industry needs. TRID is affecting the time it takes to close loans as well as the number of mortgage applications submitted.
We’ll be monitoring the effect of TRID in the market and how adjusting to the new rules will impact mortgage companies as the housing market heats up through 2016.