Clarity in TRID rules

by MPA18 Apr 2016

Over the last few years, TRID has consumed much of the discussion in the mortgage industry. For months, we talked endlessly about how to prepare for TRID -- from the need to invest more in training to projecting how it would impact operations. Then it became about implementation. As TRID took effect, we shifted our focus to the logistics of carrying out the regulations.

And that's where we are now -- still brining TRID up in discussions as we try to implement it in our day to day business. The problem that many of us our facing is the same problem that we encounter from other issues in regulation: a lack of clarity. It is enough of a challenge to alter our businesses dramatically when we know exactly what the rules are. However, when we aren't sure exactly what to do in real concrete situations, it can be hard to know how we should adjust our operational procedures.

There is little doubt that this lack of direction has caused a slowdown in the mortgage industry. Loan closings are being delayed anywhere from one to 20 days -- and about eight days on average. Lenders hear talk of a good-faith extension but have no idea what that means as far as how long the extension is good for. This makes it incredibly hard to plan.

As more and more lenders are voicing their frustrations regulators do seem to be taking notice. I am optimistic about the industry moving toward greater clarity by the end of the year. We've just got to keep plugging away and brining our frustrations to the attention of regulators. Our voices, it seems, are being heard after all...

Poll

Is TILA-RESPA a good or bad thing long term?