While growing pains have largely abated, TRID still causing headaches

by Ryan Smith08 Jun 2017
While much of the initial heartburn has abated, TRID is still causing problems for originators, according to a new study.

A recent survey by ACES Risk Management (ARMCO) found that TRID-related issues still account for a large percentage of mortgage defects. According to ARMCO, more than 68% of defects reported last year involved TRID-related issues or loan-package documentation issues.

The critical defect rate was down slightly, from 1.27% in the third quarter of 2016 to 1.5% in the fourth quarter. However, a shift to a more purchase-driven market brings its own risks, according to Phil McCall, ARMCO chief operating officer.

“The data suggests lenders are getting more adept at complying with TRID-related issues,” McCall said. “However, new areas of concern are beginning to spring up and an early correlation can be linked to a more purchase-focused market. Lenders need to learn from their own defects if they want to protect themselves against compliance-related issues, but they also need to stay apprised of changing trends if they want to mitigate the increased risk of fraudulent activity that is inherent with a purchase-driven market.”

ARMCO gathered the data by selecting more than 75,000 loans for random full-file review.

Related stories:
Defects, fraud on the rise in January mortgage apps
Finally adapting to TRID ? Mortgage defects fall for first time in a year


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