At least one aspect of TRID appears to be working

by Ryan Smith17 May 2016
TRID has caused a lot of problems for lenders – but it may be causing homebuyers to review their mortgage documents more carefully, according to a new study.

A study conducted by the American Land Title Association shows that there’s been a jump in the share of homebuyers who actually take time to review their closing documents. ALTA conducted the survey in two phases. First, the group assessed the closing experience of homebuyers prior to TRID implementation. Then the same information was gathered from homebuyers after implementation.

“Title and settlement agents went to great lengths to prepare and train staff prior to implementation of the regulation,” said Michelle Korsmo, CEO of ALTA. “The hard work of these professionals paid off 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.”

ALTA did find that TRID implementation caused some closing delays – but according to survey results, the impact wasn’t earth-shattering. Prior to TRID implementation, 77% of closings took place on time. With TRID in effect, that dropped to 74%.

“Settlement agents reported that the top reasons for rescheduling a closing to another day were issues with lender underwriting, a delay from the lender and an issue with the three-day rule,” Korsmo said.


  • by unbiased | 5/17/2016 12:22:20 PM

    the reason why they may be reading the CD is not due to any positive of TRID ..but rather they are confused by all the LE's and CD's that get sent out that they feel compelled to pay attention ... just recently I have 3 different CD's sent by a lender right before signing docs .. at closing the borrower requested that I inquire of the lender why did he receive 3 different CD''s all of which contained different bottom line figures ... TRID is a joke and a disaster ... the whole approach carries the façade that this is protection for the borrower .. the only purpose is a silent tax by the government in the name of fines and penalties.

  • by John | 5/17/2016 8:57:57 PM

    Where was the survey DONE? who pay for it? perhaps sponsored by CFBP? the TRID is not bringing any knowledge to home buyers, what is bringing is confusion and uncertainty. ESCROW companies are not informed or educated about TRID but they are still forced by seller's. SPL's are a joke, everybody knows the buyer does not have a chance to choose ESCROW nor TITLE providers. I am surprise with the survey.

  • by Captain Obvious | 5/17/2016 10:46:16 PM

    Hmmm, lets see.

    Before TRID, borrowers review of the HUD was optional prior to closing.

    After TRID, borrowers must acknowledge the receipt of the Closing Disclosure 3 days prior to closing.

    Conclusion: More borrowers are reviewing their mortgage documents prior to closing. OooooooooK


Should CFPB have more supervision over credit agencies?

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