Originators take issue with MBA’s TRID assessment

by Justin da Rosa25 Nov 2015
The recently implemented TILA-RESPA disclosure rule change has been met with frustration by originators across the country but that frustration is being exaggerated, according to the head of a leading industry association.

"I think it was a Y2K analogy where expectations of the worst happening just weren't there," David Stevens, president and CEO of the Mortgage Bankers Association told CNBC.

The CNBC article states industry players feared delays that never seemed to materialize. However, that hasn’t been the word on the street among mortgage originators.

Dana Bain, an originator with Premiere Mortgage Services, told Mortgage Professional America there have been several delays following TRID.

“There has been a lot of aggravation and a lot of money spent on compliance; the issue isn’t with the new disclosure documents, it’s with the compliance and the date requirements that result in delays,” Bain said. “Consumers are getting frustrated as well.”

It’s a different picture than the one painted in the original CNBC article.

However, a number of originators have engaged with the author of that article, Diana Olick, on her Facebook page to share their experiences.

“Members of MBA, Realtors and closing agents across the country have contacted me about the problems. These are major problems with implementation and consumer confusion,” Mark Savitt, president of the National Association of Independent Housing Professionals and president of the Mortgage Center, wrote to Olick. “The mandatory three day waiting times, especially on refinances are not sitting well with consumers.”

Olick shared her own response, after receiving a number of comments from industry professionals.

Obviously TRID is frustrating, obviously it is causing some delays, and of course it will take longer to play out, but when the (NAR) and the (MBA)… both say that they're not hearing many complaints from their constituents a full month after the (regulations) went into effect, then that is worth reporting,” Olick wrote on her Facebook page. “These are the guys who spent a ton of money lobbying to have it delayed. I talk to mortgage professionals every working day, and they're not complaining that their business is destroyed.”


  • by Julie | 11/25/2015 9:44:31 AM

    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.

  • by Ryan Taylor | 11/25/2015 9:47:18 AM

    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!

  • by Ashby | 11/25/2015 10:47:20 AM

    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.


Should CFPB have more supervision over credit agencies?