Originators not to be blamed for TRID delay

by Justin da Rosa20 Nov 2015
Delays have been an issue for originators – and clients, of course -- but it’s a problem that is out of their hands, according to one professional.

“The biggest TRID frustration is between closers on the lenders side and paralegals in the attorneys’ offices, and they are the reason for delays in getting the closing documents out,” Rick Gilbert, owner of RatePro Mortgage, told Mortgage Professional America. “That document has to go out three days prior to close, which means attorneys can no longer make last minute changes.

“The closer and the paralegal need more openness between them and quicker responses.”

Gilbert says there have been origination delays caused by delays in communication between the lender’s closer and the attorney’s paralegal.

“They can’t be sending emails at 9am and receiving responses at 4pm,” he said. “You can’t answer emails late and expect it to close on time; there has to be better communication.”

Originators across the country have been grappling with TRID-related dealys.

“We’ve had seven closing so far and they haven’t gone as well as we’d hoped,” Russ Glines, a broker with Century Oak Financial, recently told Mortgage Professional America. “As a broker, we have to deal with several lenders and each of those lenders has a different way of interpreting the new rules.”

The TILA-RESPA Integrated Disclosure was implemented on October 3. The purpose of the new rule is to ensure clients have adequate time to review closing documents.

But that extra review time has also resulted in delays.

“It’s definitely affecting closing and it’s not helping the homeowner at all,” Glines said. “It’s just a mess.”
 

COMMENTS

  • by John Rogers | 11/20/2015 4:48:38 PM

    If you think that is a problem, you should be on the NSA end of the process...getting calls at 4:30 pm e.g. for a 5:00 pm closing is ridiculous; printing out two sets of 150+ pages, reviewing them, travel to borrowers' homes, et al. These delays, last-minute calls, causes signing agents to lose assignments or take the brunt end of the H.O.'s frustration or all the above. If NSA's are making errors or cause omissions, a major part of the problem is lack of notice about the assignment and rushing to get the assignment completed and docs shipped back (and/or faxed back) in a timely manner. Sets us up for failure! In addition, sending out "cattle calls" via computer is inefficient; if traveling or at the table with H.O's, professional NSA's are not likely to answer calls disrupting the closing process. This means a high loss of assignments or behaving rudely at the closing table. Whoever schedules closings needs to be held responsible for closing problems with last-minute calls. jer/oh

  • by mlo | 11/20/2015 4:49:05 PM

    A mess is what it is ... absolutely ridiculous imposition of clerical antics that serve no purpose other than wasting critical time. In addition this whole process only costs the consumer more money than ever before. Longer closing periods dictate longer lock periods in which result in more expense to the borrower. It is a crime that the government can get away with heavily monitoring and industry with out imposing the same process on all industries throughout the United States.

    It is typical of a system that is reactive rather than proactive. TRID is a result of loose lending practices that took place over a decade ago. We do not have those conditions anymore and those MLO's that victimized the consumer are long gone.

    TRID needs to thrown in the trash .. that would be the most effective process that will save the consumer money and confusion. Go to the original 1 page GFE that had all the elements that a consumer would be concerned with regarding costs and details of their mortgage. Easy to read , easy to understand

    However we will not see a change since the big banks are behind this whole game with the intent to choke out the small lending firms.

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