“I think TRID’s impact will be significant on lenders, brokers, and title insurers; there’s going to be bumps and bruises as everyone gets used to the new documents,” Marc Israel, president and chief counsel for MiT National Land Services, a national title insurance company, told Mortgage Professional America. “It will be much harder to close on a moment’s notice.”
The fear that this will be disastrous for the industry “is overblown,” Israel said. “It will take some getting used to and people really hate change.”
However, while it may be the biggest pain point for originators currently, Israel believes players will persevere.
Israel also argues the recent change, which went into effect October 3, was necessary.
“We need to recognize we work in an industry that contains billions of dollars and there were some things that occurred during the recession that need to be changed,” he said. “The government is trying to correct some of the things that happened in the past.”
Israel expects a learning curve for his company and all title insurers.
“On the settlement end, we deal directly with lenders on timing requirements and forms,” he said. “We trained the back office and made sure our software is up-to-date.”
For their part, originators are still unsure what major issues the rule change will cause. However, many argue the industry has faced disruptive changes in the past and it has always adapted.
The Know Before You Owe rule will have a major impact on the entire industry, argues one player, but fears are being overblown.