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No Y2K drama here – TRID fears real

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Mortgage Professional America | 27 Nov 2015, 06:30 AM Agree 0
Originators are objecting to attempts to dismiss their TRID concerns as overblown hysteria on the scale of Y2K
  • Anonymous | | 27 Nov 2015, 10:44 AM Agree 0
    It is indeed awful. Those people saying it is no big deal are delusional and simply are bystanders or don't personally write mortgages, so they don't know. Look at the cost of appraisals. Just one expense to the consumer. As a direct result of TRID, and all of the software requirements to comply, the AMCs have raised the price to the consumer. Literally overnight the cost went up $50. On October 2nd it was $450 and on October 3rd it was $500 for the same report.

    Ignoring the increase in cost to the consumer due to TRID compliance is like ignoring the increase in cost due to HVCC. Again with that example, literally overnight the cost of appraisals went up $75 to $100 for absolutely no benefit to the consumer. Literally a 3rd party provides a fictitious service, skims money off the top, and adds a layer of added time and expense for an inferior product. Capitalism would have shut that awful business model down years ago if it weren't mandated by federal law.

    I predict that someday to get a mortgage you will have to go to a govt run mortgage center. There will be one option and one rate for everyone. Of course, that rate will be extremely overinflated to account for every scenario. That way the govt can fully control and regulate the entire process. It sounds like Orwellian fantasy, but ten years ago, if you would have told an originator that HVCC, Dodd/Frank, ATR, NMLS, and TRID would be in place that would have sounded like Orwellian fantasy, too.
  • Justin Haines | | 27 Nov 2015, 11:15 AM Agree 0
    Regulation absolutely hurts the person it is intended to "help" and in this case it is the borrower.

    Remember when mortgage officer compensation was passed? We have a fixed margin on all mortgages, because after all every mortgage is the same right ? Many lenders implemented "minimum mortgage amounts", meaning people with a lower mortgage amount than the lenders minimum would likely have a tough time finding someone to lend.

    Dodd Frank needs to be repealed and we need free market back. Let the weak companies fail, no more propping anyone up.

    End Rant

    -Justin Haines
  • Willa911 | | 27 Nov 2015, 12:52 PM Agree 0
    Since 2010, mortgages that have been funded are of the highest quality our industry has ever experienced. TRID, while well the previous HVCC and D/F, will continue to cost the consumer more. These laws are written and ratified by those who wish to govern the process but do not fully understand the process of providing a well structured and cost effective mortgage for the consumer. Sad really.
  • Joel Maloney | | 27 Nov 2015, 04:53 PM Agree 0
    We haven't yet seen the full negative impact of TRID. If interest rates spike, we will add the extra element of lock-in expiration to what is already a convoluted closing process. I do like the looks of both the LE and CD, however, the re-disclosure waiting periods are ridiculous when minor changes need to be made. And, as is the case with any Federal Regulations, the Big Banks are making it infinitely harder to just submit a package. The various stages of delays are NOT in the consumers best interests. I've already seen two purchase transactions where the seller accepted all cash offers at much lower prices just to avoid TRID delays. That certainly is NOT in the seller's overall best interests! But again, I've only been doing this 35 years. What do I know?
  • KristMA | | 01 Dec 2015, 05:42 PM Agree 0
    Since it is November 2015, I'm still in the early group of buyers/sellers being affected by these new laws. It has been awful. The average time to get a mortgage is now 60 days. No more 30 day closings. We can not coordinate the sale of our house with the purchase of our new one, which has been a nightmare. Had to take out additional mortgages. Our current house is now on track to close in 60 days, but our new house has been delayed by 10. We go the CTC after 60 days, but the bank and title companies need 7 to get the paperwork to us, then the 3 day waiting period, for numbers we have known since the beginning. Now, we have to have the additional cost of storing everything, moving twice, and putting my family in a hotel for 10 days. It's been just awful and a huge added expense. Lets hope we really do close and there isn't another delay, because our rate lock expires 2 days after we are currently set to close. We'll see. Meanwhile, our bank keeps telling us we are doing "good" since we are only 10 days late, most people are much longer. Keep in mind, this is a slow period. Good luck to all those spring buyers.
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