TRID costing clients more than just time

by Justin da Rosa11 Nov 2015
It’s meant to protect clients, but TRID is also costing clients money, according to one industry professional.

TRID is forcing clients to lock in rates for longer periods of time, due to the increased need for longer closings. And it’s hitting them where it hurts, says Roger Kuman, president of Trident Mortgage Group.

“It’s costing the borrower, because when they have to lock an interest rate in for longer; more people are taking out 60 day locks, which cost more than 30 day locks,” Kumar told Mortgage Professional America. “For example, a 60 day lock on a $400,000 loan could cost $1,000-$1,500 more.”

TRID has created an environment where clients have to acknowledge various steps in the originations process, which, according to Kumar, extends the length it takes to close a file.

“It doesn’t make any sense,” Kumar said, noting that the full impact has yet to be felt.

“It’s only been in effect since October 3, so you aren’t seeing the full extent.”

The TILA-RESPA Integrated Disclosure was implemented on October 3. The purpose of the new rule is to ensure clients have adequate time to review closing documents.

And Kumar’s is the latest complaint from an industry frustrated by the most recent change.

“We’ve had seven closing so far and they haven’t gone as well as we’d hoped,” Russ Glines, a broker with Century Oak Financial, recently told Mortgage Professional America. “As a broker, we have to deal with several lenders and each of those lenders has a different way of interpreting the new rules.”

Glines is critical of the recently implemented TRID rule, calling it government over-regulation. He also argues it doesn’t benefit buyers.


  • by Anonymous | 11/11/2015 12:15:48 PM

    The whole thing is just absurd. Who on Earth thought this would be a good idea? And shame on the people in the room with him for not having the courage to speak up and say, "Ah, no. That's a dumb idea. Not only will it never benefit a single consumer, but it will harm consumers. You obviously have never taken out a mortgage yourself, so you don't understand the process. Next idea please..."

    The whole industry went along with it and was too afraid to speak out, due to fear of retribution. Who wants to voice a strong complaint, only to soon after be subject to a "random" compliance audit? Give me a break. This whole TRID rule with the mandatory delays and heavily padded fee disclosures is in no way helping anyone. What happened to the concept of a good faith estimate? An "estimate" in good faith is just that - an estimate. Are we redefining the English language? Then everything had to be 100% exact, but still be called an estimate. Now, the fees are all so heavily padded upfront to cover any overages or unforseen events that they aren't anywhere near what originally would have been estimated. How is that helping the consumer? It also harms orginators when consumers are shopping, because they are obviously just going to go with the one who padded the least and has the most name recognition. Once again, big banks win.

    This is a joke. This was a failed experiment that needs to be repealed. The whole industry needs to stand up with one voice and say this was dumb. They can't lash out at everyone simultaneously, and if NAR gets involved to protect their buyers and sellers, then it will for sure happen.

  • by Frustrated lender | 11/11/2015 12:29:07 PM

    Agreed- wholeheartedly! There has been nothing good come out of this yet- clients are completely up in arms with all of the silly new rules. They just want to move on and get the process done. have told all of those that are upset about having all of the delays and extra costs to complain directly to those that did this. Borrowers are more confused than ever with the new way things need to be disclosed, it has been lose/lose for all.

  • by Community Bank lender | 11/11/2015 12:31:21 PM

    I agree the entire mortgage process is now so convaluted that it is beyond obsurd. The cfpb rolls these new requirements costing clients thousands due to longer locks and addtional lender fees to cover the extra cost of this mess yet allows greedy lenders and Real Estate brokers the right to steer business and collect additional monies in the form of kick backs called marketing agrrements. It is amazing!


Should CFPB have more supervision over credit agencies?