Are TRID closing delays over?

by Ryan Smith23 May 2016
Loan closing times appear to be stabilizing on the average, according to new data from Ellie Mae. However, some types of loans saw closing times creep up last month

Time to close all loans held steady at 44 days last month, according to Ellie Mae’s latest Origination Insight Report. Average time to close purchase loans held fast at 45 days, while the average time to close a refinance saw a spike from 41 days in March to 45 in April. Average time to close FHA loans crept up one day to 45 days, while average time for VA loans held steady at 48 days.

The average closing time of 44 days, which has held steady for two months, is the lowest since March of 2015. Average closing time spiked following the introduction of the TRID disclosure rules for loans applied for after Oct. 3, 2015; according to Ellie Mae data, loan closings took three or four more days in November than they did in October. Those levels remained high for the next few months before beginning to settle down in February and finally hitting their current low in March.

Loan closing rates, however, lost ground, dropping to 69% in April from March’s high of 71%. And credit remained tight, with 68% of purchase loans and 69% of refis having FICO scores of 700 or higher.

What do you think? Are TRID delays abating, or do these numbers not tell the whole story? Let us know your thoughts in the comments below.


  • by John Paul | 5/23/2016 11:20:52 AM

    The TRID disclosures are fine. The 3 day waiting period is creating chaos and increased stress with all parties involved. In Seattle, WA we do not get the luxury of a 45 day close. We are seeing multiple offers on almost all home sales and must close usually with 30 days or less for the seller to even look at the offer. There is not one buyer who appreciates the 3 day waiting period to review final mortgage numbers. They all complain. So much for consumer protection when it actually is hurting the group it serves to protect.

  • by Emil | 5/23/2016 12:00:46 PM

    Just to add above comment. When buyers remove all contingencies within 21 days of contract date, they pretty much move forward with the sale and adding this 3-day waiting period adds to everyone's stress. Also if you add in per diem charges by the seller, this TRID is looking like it is costing more for the borrowers. We don't need this 3-day waiting period as initial disclosures and previous Good Faith Estimates were strong enough for borrowers to make inform decisions. The 3-day recession period for owner-occupied refinance is also good enough and don't need an extra layer of 3-day waiting period as most cases, the borrower will need to extend rate lock and will cost the borrower more money. The regulators who created this rule did not account for rate locks, contingency periods for purchase mortgages and per diem charged by sellers. Also they did not add to the fact that all owner occupied mortgages are full docs and will take the longest amount of time to close due to the diligent review of the underwriters. If this TRID was used to compare costs with other lenders or brokers, then you already have the TIL to use. This TRID is an overkill to the mortgage industry!!!

  • by Griff | 5/23/2016 12:06:01 PM

    John Paul is exactly correct. Borrowers do not appreciate the 3 day wait period. I have one I am closing today one day past the closing date on the contract. The borrower very much appreciated waiting until the condo was approved before ordering the appraisal, as a result there was little time for corrections when the appraisal came in. Add the 4 days needed to get a correction to an appraisal and back into the queue for review and then 3 days for TRID we missed the closing date. Will the borrower and seller remember why? Nope. They wanted to close on Friday. Did the borrower get any new information 3 days ago? Nope. Just cooling her heels until the wait period is over.

    Having said this no one will make the cfpb aware of the real world. Buyers, sellers and real estate agents just close it out and move on after the nightmare is over. Who gets tagged as the bad guy? The broker of course.


Should CFPB have more supervision over credit agencies?

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