“There are so many nuances in the compliance area that originators are having to hire more compliance professionals,” Debbie Hoffman, chief legal officer for Digital Risk, told Mortgage Professional America, noting a noticeable uptick in job postings for compliance attorneys online following TRID implementation.
According to Hoffman, the reason for this is due to the lack of clarity around the finer details of the rule changes.
“We understand what the rule says (and requires) but what is not clear is some of the nuances,” Hoffman said. “Non-numerical clerical – formatting errors – for example: Is that something that would make the loan less appealing to investors in the secondary market?
“I think there will be a bit of a chill on secondary market investment because of TRID,” which would impact lender access to capital.
A recent study by the American Bankers Association found that 29% of industry organizations have had to hire more staff in the wake of TRID. A further 21% said they plan to do so in the future.
Further, 72% of pollsters said they are still waiting on updates from vendors in terms addressing glitches and malfunctions.
That same study found that 67% of respondents have had to pay more for legal/regulatory consulting costs because of TILA-RESPA.
The study also examined loan processing times and found 77% of lenders report increased delays, with an average of eight days in delays.
Many originators report higher costs to consumers and the need to hire more staff following recent rule changes.