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Originators take issue with MBA’s TRID assessment

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Mortgage Professional America | 25 Nov 2015, 06:30 AM Agree 0
The association’s president may be downplaying the impact TRID has had on the industry
  • Julie | | 25 Nov 2015, 09:44 AM Agree 0
    There probably weren't many "problems" 30 days after implementation. It will take 60 days or more to see the effects of TRID as the new rule went into place with new APPLICATIONS dated October 3rd. It takes 45-60 days to process a mortgage, so challenges are just now being realized as the bulk of mortgages with October application dates are now arriving in closing departments. Mortgage companies must work out the details with title companies to prepare the Closing Disclosure (aka "CD"). One last thought... the MBA has hosted countless educational opportunities for members on the new regulatory changes over the last year. Attendees of those educational opportunities will be better prepared to answer consumer questions and manage title company challenges.
  • Ryan Taylor | | 25 Nov 2015, 09:47 AM Agree 0
    Olick has her head in the sand. The business is not being destroyed, but there are more costs to the consumers and huge delays. Those delays are being caused by the lenders staff not fully understanding the rules, the attorneys not fully understanding the rules and title companies not fully understanding the rules. In NY, until trid went into effect, you had most mortgages having last minute adjustments. Now they can't and getting final numbers from all parties and then getting them reviewed has been a disaster!
  • Ashby | | 25 Nov 2015, 10:47 AM Agree 0
    BINGO Julie! We are just now starting to see the full effects of TRID in the way of waiting periods to close. The first part - the Loan Estimate - is the easy part. I actually like the mortgage estimate much better than the old GFE/TIL. The hard part occurs after you get your clear to close. That is when the frustration occurs. The CNBC article was probably researched before hardly any CDs had been issued.
  • Ashby | | 25 Nov 2015, 10:48 AM Agree 0
    I meant "mortgage estimate", not "mortgage estimate"!
  • Ashby | | 25 Nov 2015, 10:49 AM Agree 0
    I meant "mortgage estimate", not "mortgage estimate"!
  • Ashby | | 25 Nov 2015, 10:50 AM Agree 0
    mortgage estimate
  • Ashby | | 25 Nov 2015, 10:51 AM Agree 0
    Weird: I type "mortgage", but it changes to "mortgage" every time it posts.
  • SoonerPePa | | 25 Nov 2015, 11:02 AM Agree 1
    Stevens is as much in touch with the reality of TRID as are the bureaucrats that came up with this disaster. He obviously sits behind his desk in his pious position and doesn't deal with this cluster on a daily basis. He needs to get out in the real world and actually live the life the rest of us have to live!
  • mlo | | 25 Nov 2015, 11:40 AM Agree 1
    the point of the disaster of TRID is not about the mortgage originator nor the mortgage company but rather the consumer. TRID was suppose to have designed by experts that had the consumer only in mind. That is where the problem is. TRID in no way benefits the consumer. It only confuses and frustrates them more. NAR has their head in the sand as well and as mentioned no enough time has lapsed for them to see the real damage TRID is causing.

    Another huge misrepresentation is that TRID was to create an equal playing field for the broker and correspondent lender. That is an absolute lie.. a broker still has to disclose their YSP on the CD where the correspondent lender does not. Why are they exempt .. perhaps the big banks had a hand in that so that they do not have to show the consumer how they are taking from them.

    The whole process is just a testament that government does not have a clue how to operate without the corruption of politics
  • | | 25 Nov 2015, 11:43 AM Agree 0
    Amen Brother,

    The governmental officials trying to solve a problem that no longer exists, and our industry leaders kissing butt. When you sit in your office with the customers and they don't like it, and they are the ones supposed to be benefitting from this madness, it is very frustrating. The idiots in charge don't have to do the actual work, and there are way too many of them watching over us like we are criminals.

    Had the same idiots not relaxed the requirements to get a mortgage, we wouldn't be where we are today.

  • Jeff | | 25 Nov 2015, 06:29 PM Agree 0
    I agree with Ryan. Funded my first TRID yesterday, 11/24 after receiving the clear to close on the 9th. The backend was a disaster trying to get the lenders closers communicating with title companies, etc. Had warned my borrowers about the new process and possible delays but didn't expect to close and fund my mortgage 2 weeks after the clear to close. The backend appears to be the main issue I saw. Was extremely frustrating!
  • Marilyn | | 25 Nov 2015, 07:29 PM Agree 0
    TRID has caused many, many delays! The back and forth between us, escrow and the title companies to balance the CD along with the waiting period. Balancing with Escrow takes on average, at this point, a couple of days. Drafting the CD has taken, on average, 4 hours for each one.
    Washington State has to provide quotes off the undiscounted title rate and then charge & credit the buyers on the statement.
    Hard for us to understand, let alone explain it to the borrowers! And then there is the gift situation & other credits; that is a mess.
    TRID is super complicated for the professionals, let alone the clients. Not a fan! The HUD settlement statement is much easier to follow!
    Maybe some of the personnel from CFPB and Barney & Frank should sit with the closers and compliance people from different sized mortgage companies and watch the process. TRID would probably be over-hauled!
  • Colleen | | 25 Nov 2015, 09:13 PM Agree 0
    TRID has been a nightmare!! It's the blind leading the blind!! It takes a lot for APR to change by 1/8 so the CD can change drastically from what the borrower sees 3 days before versus what they see at the table. So what is the point? They want to see final fees and the CD is basically preliminary at that point. Also using the tolerance cures as a point doesn't work - they existed with the hud-1 as well. And no one mentioned the software issues. No one was prepared for such a terrible change.
  • Anon. | | 26 Nov 2015, 01:02 PM Agree 0
    At my dozen-staff title company we are just now having the TRID closings start to predominate amongst our Agency closings . Due in part to our software (the same system most every TC uses) not properly populating, and in part to the 'zero-tolerance' nature of these transactions, we are finding that a TRID transaction takes at least 4 times longer in document preparation time than a pre-TRID mortgage. The result is our properly-staffed company is no longer so, and the transactions are backing up. Having talked to my local competitors, I find they are experiencing the same problems. Today is Thanksgiving. Within 30 to 60 days from now I expect that the backlog created by the zero-tolerance particularities (with associated fines) of TRID closings will actually get some attention by the regulators. Closing agents, and good mortgage processors, do not grow on trees, take long periods of time to train, and make really, really expensive mistakes along the way to becoming fully-trained and competent professionals. I have looked, with utter shock and horror, at the number for screens and fields that must be manually completed through our industry-dominate software to generate the new Settlement Statement, and which is generated through the screens used to create the CDF. It is so bad that I floated the idea of a typewriter. Of course that wont work - how are you going to print your checks, integrate your escrow account (now balanced daily), etc. There is, apparently, not yet a workaround.
    This has got to get better. But not before it gets much worse first.
  • | | 01 Dec 2015, 08:41 AM Agree 1
    It's incredible to me they (Dodd Frank, Stevens, Cordray, CFPB, and Olick in this instance) don't have much of an idea the pain and incredible costs that is associated with TRID......ESPECIALLY the CD part. Who would have ever thought this a benefit to a consumer? To think it a good thing to radically change everything mortgage related that will (already has) cost over a billion dollars as an industry that will ultimately be passed through to the group they want to help....the consumer. Now (post TRID) a consumer has to wait three days after they consent on the CD for a purchase to "think" about it with no ability to waive that waiting period (except acts of God from what I'm told). On a refi it's 6 days. How much more does the cunsumer need it dumbed down?

    It is so incredibly complicated for the systems to work, for vendors software to integrate with other vendor's software, to design and implement safe guards in their software so lenders won't break rules that will ultimately cost them a huge fine or worse....a class action suit. The incredible and almost impossible challenge to comply with OCC rules and at the same time not break the CFBP rules or Fair lending rules or many other rules they are faced with.

    For anyone (especially in our business) to say this has been a smooth transition has not been in ANY lender's office and sat with registration people or sat with closers who have worked early mornings and late nights, who have worked their Thanksgiving holiday and weekends just to try (and fail) to keep up with the hundreds of CDs that are about to engulf them! They have not seen a closer fill in a screen with many fields of data only to loose it when they go to the next screen. They have not watched a true professional fill in blanks on a real sheet of paper with a real pencil (manually) to get a CD out the door because their software is not working.

    The worst part is not over. The only saving grace is I hope the consumer will ultimately say after being relentlessly delayed time after time that enough is enough and call their Senators and Congressmen and let them know what they think about TRID, Dodd Frank and especially the CFPB that is ruled by one person.
  • Virtuoso | | 01 Dec 2015, 01:53 PM Agree 0
    Thank You for sharing the "Real Story".
  • Virtuoso | | 01 Dec 2015, 01:54 PM Agree 0
    Thank You for sharing the "Real Story".
  • KristyMa | | 01 Dec 2015, 06:32 PM Agree 0
    I'm a consumer with a 60 day close. I am now hoping to close at 75 days. And all my broker and bank keeps saying to me, when I get my closing delayed for the third time is, "This is really good turn around time for TRID". I will be closing (hopefully) 10 BUSINESS days after my CTC. Because the bank needed more time for the disclosure, plus the 3 days. ("hundreds of mortages lined up before yours.")....By the way, three day waiting period to digest numbers I was given from the beginning with the GFE? Why?

    Meanwhile, I'm paying for storage and to put my family up in alternative housing for half a month. And frankly, dipping into the funds I need to close. Keep in mind, this is not even a busy time for the industry. Good luck to all the spring buyers.
  • Geoff | | 07 Dec 2015, 11:21 AM Agree 0
    It's not a 3 day waiting period. It's a three day waiting period JUST TO GENERATE the CD between the title companies and investors, as each have 100% different ideas of how it is required to be done.

    Then once their legal teams agree a CD is finally produced and the three day wait begins.

    Simple show of hands who think this has not impacted the industry would be sufficient. It clearly has, and having a mortgage industry representative state otherwise is comical and sad.

  • | | 23 Dec 2015, 03:36 PM Agree 0
    Thank you!!
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