“The transition has been a relatively smooth process … but we haven’t gone through an end-of-the-month yet, which could be an issue,” Tom Hutchens, SVP with Angel Oak Mortgage Solutions, told Mortgage Professional America. “We haven’t had to go through the closing disclosure process yet and that’s the biggest change, so talk to people come November 2.”
The “know before you owe” rule, which went into effect October 3, caused a stir throughout the industry, with originators wondering how the change would impact their business.
For his part, Hutchens – who works on the lender side of the business – says each lender has different processes for originating deals, and that each will be impacted differently. For him, the biggest question is whether the CFPB will make good on its promise to allow a grace period for players acting in good faith.
“I am sure every lender has found holes in their processes that need to be buttoned up,” he said. “CFPB said as long as lenders work to correct those deficiencies they will be held harmless.”
Hutchens says originators have reported the new rule is much easier to handle than originally thought.
“I would say it’s just the new way of doing things,” Hutchens said. “We’ve always dotted our I’s and crossed out T’s.
Brokers are reporting TRID implementation has been relatively painless, especially considering the uncertainty of how it would impact the originations process, but they should be prepared for some disruption in the coming weeks, according to one player.