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TRID is strangling mortgage profits – report

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Mortgage Professional America | 17 Mar 2016, 01:06 PM Agree 0
Mortgage production profits dropped more than 60% in the wake of TRID, says a new report by the Mortgage Bankers Association
  • NPG | | 17 Mar 2016, 01:36 PM Agree 0
    It is not effecting my business - it is effecting the cost to the consumer.
    Funny how "Know Before You Owe" has made the process more difficult to understand, fees from closing attorney's have doubled, lender underwriting fees have increased, appraisals are up 45%, you have to lock a mortgage for 45 days to be safe - that is costing the consumer a ton of money over the life of the mortgage and reducing their lender credit to help cover closing cost or increasing their fee to buy down the rate.

    Just not sure why no one is talking about the cost to the consumer instead of brokers/banks profits.

    That is why the broker channel is growing and will continue to grow - our fees/rates are much better than the big boxes & correspondent lenders.
    Just my 2cents
  • Broker Boss | | 17 Mar 2016, 01:58 PM Agree 0
    You are exactly right. No one is concerned about the cost to the client. It is ridiculous.
  • Anonymous | | 17 Mar 2016, 01:58 PM Agree 0
    Agreed and we need to address the mandatory 3 day wait before a closing can be scheduled. It is absolutely maddening to everyone in the process. Who on Earth devised that plan to introduce a 3 day wait at the end before a closing can occur? Nobody wants it. In fact, consumers are angry that it exists and they have no ability to waive it. It costs consumers money and frustration, and then there is the 3 day rescission after that with refis. The whole thing is ridiculous and beyond absurd.
  • | | 17 Mar 2016, 02:09 PM Agree 0
    With elections coming up, it makes one think again if they want more of less government. I'm all protection of the consumer, but TRID seems to be more of a problem than a solution.
  • Pam W. | | 17 Mar 2016, 02:42 PM Agree 0
    I work for a small community bank and we have had to compensate for the increased costs of all TRID and recent HUD implanted policies. From just the TRID disclosure cure issues that are almost inevitable to software that could not keep up with all the "intended" CFPB requirements that are being clarified after the fact, we have mortgages that should have been profitable and are costing us money! Any lender, no matter how big or how small, is a for profit business. The consume is paying this price for the lender having to CYA on every aspect of the mortgage process.
  • Hugo | | 17 Mar 2016, 02:46 PM Agree 0
    The increased regulations and compliance costs created by TRID have depleted profit margins and eliminated the small mortgage brokers. Only the large banks shall be able to absorb the increased costs of compliance and the liability exposure created by TRID. At the end, these costs will be passed on to the consumers, the same group, for which TRID was created to protect in the first place. More of the "2 Big to Fail" policy

  • TinaP | | 17 Mar 2016, 02:47 PM Agree 0
    The rule is ridiculous. Our borrowers cannot read or understand the new Closing Disclosure, nor can the closing attorneys. The underwriting fees, attorney fees, and appraisal fees have all increased over this new rule. Also, we cannot close a mortgage in 30 days which is costing the consumer a higher interest rate. It makes no sense at all. Our borrowers are furious that their closings are getting delayed due to this rule. The CFPB is hurting the consumers more than anyone. I don't understand it at all.
  • | | 17 Mar 2016, 03:00 PM Agree 0
    We simply call it a TRIDaster!
  • | | 17 Mar 2016, 03:25 PM Agree 0
    We NEED to get back to business as it was before!! The old "New GFE" confused our borrowers as well!! Somebody has to listen HELP!

  • Joe M. | | 17 Mar 2016, 05:36 PM Agree 0
    TRID... I believe the forms are definitely easier to understand than the garbage TIL/GFE/HUD however, the accuracy of 3rd Party fees needs to be more flexible. More Importantly, the Consumer "does" need to have the right to waive the 3-day delivery of the CD to protect them from a delayed closing.
  • | | 18 Mar 2016, 09:43 AM Agree 0
    Keep voting Democrat folks!! As the "Great Leader" said "elections have consequences"!!
  • its all backwards | | 18 Mar 2016, 10:42 AM Agree 0
    If I'm correct, the reason for this whole mess in the first place is due to a buyer not understanding her closing fees prior to a close. Her daddy pushed through this new "know before you close" mess and now we all pay the price because she was a young first time buyer not understanding things. I get that and feel bad when that happens but, do we all have to deal with the cost, time and changes??
  • mlo | | 22 Mar 2016, 01:20 PM Agree 0
    All that TRID is designed for is to fine and penalize the originator for time infractions and ridiculous disclosures .. never intended to benefit the consumer ... only to create revenue for the government and entities they sponsor

    any professional in the business can see right through the program .. TRID is a pathetic waste.. needs to go and needs to go now !!
  • MLO | | 22 Mar 2016, 01:28 PM Agree 0
    Bring back the original Good Faith Estimate now known as the "Closing Cost Worksheet" .. perfect document .. easy to read .. everything that needs disclosure presented .. one page .. but NO .. we have to have LE's CD MBFD's BA's Anti-Steering . MLDS 883's and on and on .. no reason other than gives CFPB many opportunities to fine and penalize
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