“I just closed a deal in two weeks, which many thought to be impossible,” Larry Penilla, an originator with A&M Mortgage Group, told Mortgage Professional America. “But if you’re accurate with the documents from the start you can avoid many of the delay issues.”
Anecdotal evidence is, admittedly, not the strongest but Penilla’s optimism is fresh considering just how many industry players had predicted last year’s TILA-RESPA disclosure rule change to be one of the biggest hindrances the industry has faced in years.
And, of course, there is evidence to suggest originators are struggling to close deals.
“I’d like to know just how much longer it’s taking the average deal to close because of TRID and how much more money it’s costing clients,” Penilla said.
According to Ellie Mae’s latest Origination Insight Report, the average loan took a total of 50 days to close in January.
That’s an average of an extra 10 days longer to close than it took in January 2015.
And despite his optimism, Penilla has noticed the delays.
“I know it’s causing problems across the board,” he said. “Software companies, lenders, vondors, and everybody else working on a deal are trying to figure out just what the CFPB now requires” which results in the delays.
TRID delays may be very real but originators can do what they can to ensure deals are still completed expeditiously, according to one industry veteran.