Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

TRID costing clients more than just time

Notify me of new replies via email
Mortgage Professional America | 11 Nov 2015, 06:30 AM Agree 0
TRID hasn’t just been difficult for originators: Clients are also frustrated for a very good reason, says one industry veteran
  • Anonymous | | 11 Nov 2015, 12:15 PM Agree 0
    The whole thing is just absurd. Who on Earth thought this would be a good idea? And shame on the people in the room with him for not having the courage to speak up and say, "Ah, no. That's a dumb idea. Not only will it never benefit a single consumer, but it will harm consumers. You obviously have never taken out a mortgage yourself, so you don't understand the process. Next idea please..."

    The whole industry went along with it and was too afraid to speak out, due to fear of retribution. Who wants to voice a strong complaint, only to soon after be subject to a "random" compliance audit? Give me a break. This whole TRID rule with the mandatory delays and heavily padded fee disclosures is in no way helping anyone. What happened to the concept of a good faith estimate? An "estimate" in good faith is just that - an estimate. Are we redefining the English language? Then everything had to be 100% exact, but still be called an estimate. Now, the fees are all so heavily padded upfront to cover any overages or unforseen events that they aren't anywhere near what originally would have been estimated. How is that helping the consumer? It also harms orginators when consumers are shopping, because they are obviously just going to go with the one who padded the least and has the most name recognition. Once again, big banks win.

    This is a joke. This was a failed experiment that needs to be repealed. The whole industry needs to stand up with one voice and say this was dumb. They can't lash out at everyone simultaneously, and if NAR gets involved to protect their buyers and sellers, then it will for sure happen.
  • Frustrated lender | | 11 Nov 2015, 12:29 PM Agree 0
    Agreed- wholeheartedly! There has been nothing good come out of this yet- clients are completely up in arms with all of the silly new rules. They just want to move on and get the process done. have told all of those that are upset about having all of the delays and extra costs to complain directly to those that did this. Borrowers are more confused than ever with the new way things need to be disclosed, it has been lose/lose for all.
  • Community Bank lender | | 11 Nov 2015, 12:31 PM Agree 0
    I agree the entire mortgage process is now so convaluted that it is beyond obsurd. The cfpb rolls these new requirements costing clients thousands due to longer locks and addtional lender fees to cover the extra cost of this mess yet allows greedy lenders and Real Estate brokers the right to steer business and collect additional monies in the form of kick backs called marketing agrrements. It is amazing!
  • Frustated Loan Originator | | 11 Nov 2015, 12:57 PM Agree 0
    This is stupid and absurd. Good Faith Estimate was so simple to explain to borrowers who are more confused than ever before. Why do we need 3 days mandatory waiting time after CD is sent out. This should have been borrowers' option. Lenders, mortgage originators and borrowers are all confused. NAR should get involved and have it repealed.
  • MB | | 11 Nov 2015, 01:27 PM Agree 0
    I agree with these comments as well. But there is an additional cost to the consumer that has not been mentioned yet, and is becoming more and more evident has we move forward with TRID compliant mortgages. The cost to the consumer charged by the closing agent - attorney or settlement company has gone way up. Every closing agent we work with has increased their fees; all due to TRID implementation. Apparently the regulation required a change in operations for them as well, in particular requiring the hiring of 2 employees to do specific tasks in compliance with the CFPB and TRID. For small offices the impact was huge. And the cost is passed on to the consumer. TRID should be overturned. Dodd and Frank should be in jail. And the CFPB should be out of business!!
  • Game Over | | 11 Nov 2015, 01:32 PM Agree 0
    Government is always the problem and never the solution!! Mommy government knows best . I think the entire industry should go on strike and not write any mortgages until this is repealed. Unfortunately, the big banks will never comply since they are in bed with the politicians and regulators. What a dumb country we have become.
  • Angry MAs | | 11 Nov 2015, 01:44 PM Agree 0
    Government involvement in lending has reached a new apex of ignorance and inefficiency. Those lenders who were breaking tolerance on their GFE's may be slightly deterred by TRID but if their business model was designed to mislead clients, they will find a way to exploit TRID. The other 99% of lenders just trying to originate and close mortgages will suffer longer processing times, more frustrated borrowers, and NO ONE benefits. A client has every ability at the closing table to walk away from the table and tell the lender to fix the HUD1 (reduce a fee, waive a point, whatever...) and escape any attempt at predatory lending. All they had to do was implement a disclosure at closing that the borrower has to read and sign prior to endorsing the closing documents. It could say something like "Read your settlement papers carefully and call your lender BEFORE you sign if you see anything suspect". I thought we fixed this by implementing a 3 day rescission? If mandatory rescission AND a disclosure urging homeowners to read their HUD1 before signing isn't enough, well...then...truly anything TRID has to offer would be moot as well. A HUD1 or a GFE isn't exactly rocket schematics and a 10% tolerance is totally reasonable considering per diem and third party costs do fluctuate. TRID has been a nightmare at my firm and most clients who have received LEs and CDs find them MORE convoluted and confusing than they ever found TILs, GFEs, and HUDs.

    Customers care about three things, rate, payment and cost. TRID not only overcomplicates the whole process but makes it NO easier than a TIL (which was really a perfect document) to interpret the financing one was offered. I hate it, will continue to hate it, and my clients are angrier and more confused than ever. GREAT JOB IDIOTS! Whoever thought this piece of garbage up should be drug into the street and shot.
  • Kim | | 11 Nov 2015, 03:26 PM Agree 0
    As a seller TRID just cost me a reasonable closing date, an additional two weeks in a hotel for $1000.00 waiting on my equity check to buy another house. Fees to turn utilities back on....and the home we could afford and want is now sold. TRID has cost my buyer hundreds as well.
  • Pavaso | | 12 Nov 2015, 10:36 AM Agree 0
    There is a solution to keep closings to 30 days or less. Pavaso “Intro to Digital Close” video

    Intro to Digital Close
    This video is an overview of Pavaso's Digital Close process.
    Watch now...
  • Title guy | | 12 Nov 2015, 12:15 PM Agree 0
    Kim, you should contact CFPB and tell them. They want consumer feedback. I disagree with anonymous. There were plenty of people raising hell with CFPB and having meeting after meeting with them to no avail. You want stupid? Think of how they are purposely causing title insurance charges to be disclosed incorrectly on the CD. In more than 40 states, that's how it works out. Because they didn't have common sense to figure out how to explain discounts to consumers. Now when we do a closing, we have to tell them that the "transparent" CFPB is causing lies to occur on the CD, and here is a new, ADDITIONAL disclosure to try to explain who is really paying what for title insurance, rather than the lies on the CD. This is supposed to ease consumer confusion. Ha! CFPB would not listen. We also tried to tell them how important it was for them not to call title insurance optional on the first disclosure. That as the CONSUMER protection people, they would be responsible for people NOT buying title insurance. They actually said to us, "We don't want to do your marketing for you. " Even after we told them because of simultaneous issue discounts, we make very little on owners policies in most states. So they are dissuading consumers from protecting the most important purchase of their lives out of what, spite? Ignorance? What will they say when the consumers start knocking on their door and telling them they are now broke because they had to pay litigation costs. They lost their house because there was no title insurance. CFPB was too arrogant throughout the process with an attitude that they know best. And now consumers will suffer.
  • Kamili Samms | | 12 Nov 2015, 01:17 PM Agree 0
    The TRID requirements are meant to protect the consumer, not hurt them. I agree that the extra days needed to disclose the fees may be bothersome to everyone but this puts the consumer in the driver seat. The lender, escrow, and agent's must now all do their jobs properly to provide the consumer with their final costs in advance of being at the closing table. My primary wholesale lender is United Wholesale Mortgage who has done WONDERS to help their brokers keep 30 day escrows. As a broker, our goal is to have all parties provide the necessary items needed to keep our escrows at 30 days or less! That means advising agents to avoid last minute changes which could delay closings. Personally, I think this could be a good change for the industry.
  • | | 13 Nov 2015, 06:56 AM Agree 0
    The consumers ANd the mortgage professionals need to stand up and take some responsibility for this piece of legislation. We all to need to spend less time complaining after the fact and watch what our legislator and the CFPB is doing and protesting BEFORE the fact not after.
  • | | 13 Nov 2015, 07:15 AM Agree 0
    This is a typical horse designed by a committee (old joke you get a camel). Every idea, good bad or indifferent was tossed in to make things "better." As someone who runs a title company and has attended thousands of closings I have never seen a consumer once ask any of the questions these new regs pile on. We should have one form, how much down, how much a month and what is my rate.

    Now my own sale is delayed thanks to bureaucrats in Washington with no real world experience.
  • Marc Savitt | | 13 Nov 2015, 07:49 AM Agree 0
    The CFPB director was warned this would happen. He now owns this! This rule was written by individuals with absolutely no industry experience. We know, because we asked. The CFPB holds required comment periods and then ignores the negative comments. For an agency that has unprecedented enforcement an oversight authority, theCFPB has no oversight or accountability itself. Special thanks to Chris Dodd and Barney Frank for once again screwing up an industry that accounts for 17% of the overall economy.

    All those having problems with this rule please contact me at:
  • | | 13 Nov 2015, 11:35 PM Agree 0
    You are absolutely correct. I own a very small independent title agency and this implementation has been devastating already. We are having to raise fees that have been the same for 12 years. The work involved has doubled and additionally we are dealing with alot of lender portals that are requiring we pay fees to register and upload title docs. This is a nightmare for everyone and I cant believe NAR is making light of it.
  • | | 13 Nov 2015, 11:38 PM Agree 0
    This title gal agrees 100% with title guy
  • DIMITRI TIMM | | 14 Nov 2015, 12:01 PM Agree 1
    I recently had a situation where TRID delayed closing by 10 days! The buyers almost lost their house and this new regulation is to help consumers? All I have to say is that if any presidential candidate has a plan to remove the Dodd Frank Act and TRID... they will get my vote hands down!
  • Shelley Winder Ainsworth | | 14 Nov 2015, 03:36 PM Agree 0
    I work in Escrow and this has already caused a lot of added stress on EVERYONE involved. The Buyer, the Seller, the Mtg broker, the Lender and Escrow. Taking courses, watching videos do not prepare you for the "real deal". TRID is very convoluted and frustrating. Not sure who thought that this would be a good idea but I'm really missing my HUD right about now.
Post a reply