First TRID effects felt

by Justin da Rosa14 Oct 2015
Mortgage applications saw a drastic drop during the week following TRID, but not all originators have felt the effects … yet.

“Application volume plummeted last week in the wake of the implementation of the new TILA-RESPA integrated disclosures, which caused lenders to significantly revamp their business processes, and as a result dramatically slowed the pace of activity,” Mike Fratantoni, MBA's chief economist, said in a release. “The prior week's results evidently pulled forward much of the volume that would have more naturally taken place into this week. Purchase volume for the week was below last year's pace, the first year over year decrease since February 2015, while refinance volume dropped sharply even with little change in mortgage rates."

According to the Mortgage Bankers Association, applications fell 27.6% week-over-week for the week ending October 9.

TRID went into effect October 3.

And while the stats point to a major downward trend – at least for now – for mortgage applications, the worst may still be to come.

“I haven’t seen that as of yet but now is not the time to see the full effect; a lot of the stuff in my pipeline are pre-TRID applications,” Tyrone Maxie, a branch manager with Academy Mortgage Corporation, told Mortgage Professional America. “Early next month will be a much better indication of how much TRID is impacting applications.”

Still, the most recent stats are a drastic change from the week prior, which saw clients flooding to brokers in a bid to get ahead of the TRID guidelines – and the delays many have predicted will come along with that more rigorous disclosure process.


  • by | 10/14/2015 5:12:02 PM

    It is not protecting our Sellers! How are they supposed to plan with moving companies??!!

  • by | 10/14/2015 7:08:01 PM

    TRID is a TURD ... bottom line all it has done is convoluted the mortgage process and will cost the consumer more in the long run ... ridiculous to have people that have never been in the mortgage industry setting new guidelines only to cause a negative ... the lending industry is a total joke now.

  • by Gordon Miller | 10/14/2015 7:49:21 PM

    Increased costs are the other big negative . Closing fees are up 100%. Surprised all banks aren't exempt. Just go ahead and get rid of us evil brokers already


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