Conflicting TRID Reports Surface

12/02/2015
 
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Well there seems to be some conflict with how TRID is impacting the mortgage and real estate space.  How is it affecting you?

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  • Much to do about nothing. It was so blown up that we are being asked to get rid of inspection issues and oil adjustments way ahead of time. When you read the rules it has nothing to do about oil adjustments or inspection issues. If anything, it helps us predict when the closing will actually take place

    leo Chomen December 2, 2015 3:24 am Reply
  • TRID has definitely slowed down the lending process. Title companies we work with are struggling with it because every lender wants the CD prepared differently. The 3 day waiting period at the end is so needless. Borrowers simply want to close.

    Waverly December 2, 2015 3:35 am Reply
  • TRID has definitely slowed our closings down.
    If it were truly good for the client I would not complain.

    I have a closing this afternoon. After 2 preliminary CDs the
    Borrower still does not have accurate cash to close.

    Wayne Malcomb December 2, 2015 3:36 am Reply
  • TRID is a major obstacle right now because back to back closings are next to impossible to coordinate if you have different lenders involved on the transactions. I had 3 sales, which 2 were my listings, one that I sold myself, the other listing of mine that another agent sold, and another agent’s listing that I sold, that were all tied together. I timed my contracts at 60 days for my sales, and used 1 lender and title company. Unfortunately, the buyer’s agent for my listing that I didn’t sell, used a different lender and title company and that was the 1st transaction in line. Because of the TRID requirements, that lender said we needed an additional 10 days at the very end. That messed up everyone’s moving trucks, etc. My lender was ready to close with the 3 day required waiting period. Not every lender follows the requirements, and extends them out past the actual required time. Title companies are having a hard time getting things to balance on the HUD with the new requirements, which leads to further delay. Take us back to PRE-TRID! Buyers and sellers are so frustrated even if I we tell them up front that there will be a waiting period after we are clear to close.

    Cindy December 2, 2015 4:07 am Reply
  • DISASTER! Lenders are not equipped to prepare closing docs & calculations are completely off. Buyers are not interested in the 3 day period provided to review docs, they want to close PERIOD. My client needed to put her things in storage & move in w/ her parents b/c the bank can’t get it together. Locks are expiring & clients have to pay the penalty…Not fair. Buyers ought to have the option to waive the TRID requirement, if they so choose, & PLEASE let’s get the HUD back into the hands of the settlement companies where it belongs. We all have our expertise, preparing closing docs is not 1 for lenders!

    Elaine Molina December 2, 2015 4:51 am Reply
  • It’s much too soon to run headlines like this. The issue at hand as I see it is there are thousands of lenders each complying with TRID in their own way. This is due to the CFPB refusing to provide clarification to their own rule. When a lender contacts them, the only response they receive is “go to this section of the regulation”. I’ve actually been to seminars where the CFPB was the speaker and they actually start the presentation with “This is not legal advice. This is for informational purposes only. Consult with your legal counsel for interpretation of the rule”. What’s the point of hosting the seminar if you’re not going to provide usable information? It’s frustrating at best. In the long run this process will make the closing significantly uneventful however it will take 6-12 months before we reach that point. In the meantime, all facets of the process need to understand this is new to everyone. Have patience and openly communicate with each other. Starting with the Realtor, through the Mortgage Rep and ending with the Closing Agent.

    Marc Reneau December 2, 2015 4:52 am Reply
    • Marc, I couldn’t have said it better myself!

      Monique December 2, 2015 10:18 am Reply
  • Trid has not delayed any of my closings and I believe that it is because the company that I work for was well prepared! A lot of my referral partners have been telling me that the larger “too big to fail” banks are having the issues and creating longer closing cycles like Njeri mentioned above. It seems to me that the smaller shops are able to adapt much more efficiently.

    Adam Miller December 2, 2015 4:54 am Reply
  • As a lender we now disclosed charges that will not even be applicable in the deal such as subordinate financing reinspection fees ETC. I had a client who asked about all the extra charges on things that are being disclosed. I explained to him about the zero tolerance and how we now overdisclose. he replied. ” so basically what you are saying is this information is not correct”. I told him with the new rules he now has less accurate information. This I feel will lead to lender protecting themselves and just stating additional fees as a cushion. This leads to additional funds to close which will be a problem in itself at times. I have no client that is happy with the over inflated disclosures.

    Dan Crego December 2, 2015 5:00 am Reply
  • Trid has not delayed any of my closings (3 purchases and 3 refis) and I believe that it is because the company that I work for was well prepared! A lot of my referral partners have been telling me that the larger “too big to fail” banks are having the issues and creating longer closing cycles like the other comments mentioned above. It seems to me that the smaller shops are able to adapt much more efficiently.

    Adam T Miller December 2, 2015 5:37 am Reply
    • Adam, I have had the same experience as you – not happy with the process – but agree smaller shops seem better prepared. I also keep on top of everything to make sure it is going as planned – I am my own closing coordinator – and still sell homes – I just want my clients happy at the end so I hold their hands all the way through – all conversations with buyers have me included.

      Bill Carmichael December 2, 2015 6:31 am Reply
  • My first closing under TRID and first for Lender and Title Company went incredibly smoothly. Experienced Lender, experienced Title Company, experienced Realtors, first time home buyers thrilled and seller satisfied.

    Diane Ryan Morin December 2, 2015 5:39 am Reply
  • Closed my first TRID 203k 10 business days after TRID went into affect. Have had 6 TRID closings with no delays yet. If you’re having issues, you’re working with the wrong lender. My realtors know they are my priority and their clients will close on time or early even with TRID. #MovementMortgage gets it. Check them out.

    Dan December 2, 2015 6:10 am Reply
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  • Its a problem…not always, but sometimes….I was pushed to try to close earlier than the PA date…due to the sellers buying a new home and their date got moved up…I was able to close early…but the sellers Loan officer didn’t disclose in time so they had to wait anyway,,,,without Trid…they could have closed on time

    Al Coleman December 2, 2015 6:17 am Reply
  • TRID isn’t the problem, it’s actually a step in the right direction towards a solution. The regulators actually got it right for once.

    TRID implementation and getting here is and was the problem.

    TRID simply stated is a paradigm shift for the Lender. Instead of prioritizing credit decisions and credit documentation, with Fee tolerance and disclosure a subsequence event.

    Now fee tolerance accountability and disclosing any change in Fees to the Borrower takes priority over the credit decision, conditions and subsequent documentation.

    Three day settlement before the transaction closes… Simply Aligns the credit markets with the debenture and equities markets for settlement. Confirmation, three days to pay.

    LOS disclosure integration and settlement agency compliance and communication is a the real issue.

    Flip the switch on October 3rd while maintaining previous regulation compliance with GFE reform, that’s where the regulators got it way wrong.

    Getting to TRID: Wrong was a five year debacle of GFE reform. Five years later lenders and originators still made mistakes on the GFE.

    Wrong was Lender Paid vs Borrower Paid. Can’t earn on two sides of a transaction… They have he same rules in the Equities Markets. Markups vs Commissions. We didn’t need this designation to change this.

    CFPB is just aligning the markets.

    Like High Priced Loans and QM Broker Comp Reform. Three points Max Comp. Very similar to a Brokered real estate transaction for a Listing Agent Or Buyer Agent Compensation. Alignment

    The comments made in Frank and Gary’s segment about “Closings actually taking less time”, I believe is reference to the CFPB’s TRID definition of the Transactional Closing”, not the industry’s traditional understanding of “consummation of a closing” which was from CTC to borrowers endorsement at the table. Now consummation has a whole other meaning with delivery o the Closing Disclosure (just like receiving your equities confirmation 3 days in advance of the payment being due.)

    If only… This rule was the first settlement reform, we would all have been better off and much further along over the past five years and far past the pain we must all suffer thru once again with reform.

    But it will only get better from here.

    NOW, LETS GET RID OF BORROWER PAID VS LENDER PAID DESIGNATED TRANSACTIONS!!!

    Not being able to reduce a “fixed” originator comp plan on a TRID regulated transaction to Benefit the borrower is ridiculous. It is just as important for the Originator to have the ability to negotiate in good faith to reduce their fees as it is for the borrowers Ability to shop and negotiate the best “deal”.

    Isn’t that very similar to the definition of Safe Harbor?

    (“Lender Comp” conspicuously not disclosed anywhere on the LE…?) was the door left open, I don’t know, but

    The CFPB still has this wrong. Because under the current TRID guidelines, you have to start an entirely new transaction (new loan application) with the borrower to reduce a fixed Compensation… Because this is considered a “proxy”.

    Me, I always thought a “Proxy”… Was an “anti-inflammatory”….

    John S December 2, 2015 6:31 am Reply
  • What a mess. This is not for the consumers protection at all. The lender’s zero tolerance requirement, while trying to hit a constantly moving target it is unreasonable. It is time to move past the ‘Evil Banker’ stigma and allow us all to provide what the customers deserve-quality customer service

    Karyn December 2, 2015 6:37 am Reply
  • Bottom line is borrowers are being punished by these new guidelines. We had to do a 15 day extension on a refinance to cover the TRID waiting rules, T-Giving and the “3 day right of rescission” (Someone explain to me WHY THERE STILL A 3 day R of R on Refinance Transactions????)
    Sure sounds like the consumer is being helped……

    Tim Madden December 2, 2015 6:43 am Reply
  • So far, so good. My very first TRID deal, from submission to funding, was done in 21 days. Some folks know how to work it, and some don’t….It’s always been that way…

    Scott Lawson December 2, 2015 7:17 am Reply
  • TRID has caused the closings to take longer on Monday of this week a $200 mistake by the lender caused the closing to last 3 hours instead of 1 hour, also some of the builders lenders are wanting a HUD and saying they are not accepting a closing disclosure as proof of the sale.

    Tom Witzel December 2, 2015 7:21 am Reply
  • I have seen more problems come up because of the lack of consistency from Title Companies not doing the “TRID” math when it comes to calculating the owners title policy. It is more confusing now that ever to try and decipher what the actual cost of the Owners title policy is. I have yet to see the same estimated CD come to me from different title companies. Frustrating!!

    Renee Douglas December 2, 2015 9:25 am Reply
  • It’s way too early to tell. You’ll start to see stips and issues with the back-end purchases. When the Compliance Departments start dictating policy for the front office, the tail starts wagging the dog.

    Steve Romero December 2, 2015 9:30 am Reply
  • Closed one last week and no issues except for the Escrow Company. Closed in 30 days!!! Buyers lender needed an extra day but closed it the day before Thanksgiving which was a miracle in itself. The lender was geared up but the Escrow Officer was still stuck in doing everything the last week. Once she came to the party it was pretty smooth. The question to ask is the Lender geared up for TRID???

    Tere Rice December 2, 2015 9:40 am Reply
  • TRID for us has been a mixed bag. While we have yet to miss a close date because of the TRID rules, it has cost us significantly….which ultimately will be passed off to the consumer. Another unintended consequence. I will say that the transition has been very stressful on staff because there is still different interpretations on some things.

    Rich December 2, 2015 10:32 am Reply
  • So, no had a buyer who got their CD 13 days before closing. On the day of closing, my sellers and I had not seen any type of closing statement (to confirm what they had agreed to pay, who was holding earnest money, purchase of home warranties) AND the lender had not wired the funds even though we were closing at 9 am. Yes indeed, everything really went better?????

    Brenda December 2, 2015 12:38 pm Reply
  • Mixed results. While I haven’t personally had issues with my own closings, my agents have had some. Consistency and interpretation has been the thorn in our side. I knew some title companies would be extra cautious and conservative given how the CFPB reacts if you sneeze in the wrong direction. I do have 1 complaint. I’m a Broker/Owner and in representing buyers I am not receiving anything at all reflecting a commission was paid. Nothing but the check or wire confirmation. Of course we must have an official record of a commission paid (settlement statement, etc, but something official) and here in Texas that is almost always reflected from the seller’s side. If you represent a buyer and the title company does not share anything at all regarding the sellers settlement side, then you have absolutely no record of a commission being paid. A few transactions have provided an ALTA form that shows both sides of the transaction, buyer and seller, thus commission paid are reflected. Some title companies are not using that form. Others are using that form but are only providing buyers brokers the closing data for buyers side of the transaction, and listing brokers the sellers side, thus the buyers side has no official documentation of a commission paid. They are all over the map. I understand their hesitation and caution, but they need to understand at the Broker level we must have an official recording and tracking of commission paid to that brokerage entity or its agents designated on the CDA. The “Closing Disclosure” is not reflecting it unless you see both sides. Title companies are now putting my brokerage at risk if any transactions were to be audited, end up in litigation, or end up in a commission dispute.

    Dustin December 2, 2015 1:21 pm Reply
  • We are only now starting to see the effect of TRID in our industry. I work for a lender and it has been very stressful-though the lender I work for is prepared for TRID and we are fully educated about it-it is still extremely stressful. Not everyone was prepared-and TRID is industry-wide. Positive aspect-more accountability on the part of processing, underwriting and closing, which is appreciated (but not by them I am sure). I know the CFPB is trying to protect and fully inform the consumer, and I am all for that. The comments above highlight some of the challenges we are already having during this transition-doesn’t look pretty. Just don’t think we’ve seen the full effect yet–but we are an adaptable species-so there is hope!

    TA Sullivan December 2, 2015 5:50 pm Reply
  • As both a lender and realtor, my experience with trid has been negative. It’s a cost benefit issue. Is it worth the cost to extend everyone’s closing by 3 days ( or more) in order to benefit the occasional borrower who may have been surprised at the closing in the past by fees they didn’t expect? My answer is NO !

    There was a law in place already that required the HUD to be presented to the borrower the day before the closing. All the cfpb had to do was to enforce existing law. The 3 day wait period helps no one and hurts everyone.

    My lenders ( I am a mortgage broker) were not ready for trid, and they all handle it differently. Once we get past the learning curve, it will get easier to deal with, but it’s time to get the politicians out of the mortgage business.

    Government regulations that help no one have raised the cost of getting a mortgage and have increased the stress and irritation for everyone. An appraisal that should cost $300 in my market costs $485 to pay the AMC. Poor appraisers are overly protected by the AIR. Now TRID raises compliance costs and lengthens transaction times, hurting the borrower.

    Where are you Ronnie Reagan? ” the most frightening words in the English language are ‘ I’m from the government, and I’m here to help'”.

    john December 3, 2015 5:30 am Reply
  • I see TRID ( The Reason I Drink ) as an irritation in the loan process. Yes some of the forms are better, and easier to read and understand. Did we need to have a whole reform to lender processing to create better and easier forms.

    Title companies are having issues with where they want to place their fees on their closing CD, and where we as a lender want the fees placed. The title companies are telling us the same thing that each lender is different where the want the fees placed on the CD. The other issue I ran into for us and the title company. We have all our fees in place, but we print out our forms, and we have different cash to close amounts. That is the irritation.

    David Meyers December 3, 2015 5:58 am Reply
  • I have had five transactions now that TRID has caused problems with. One recent issue is the title company adding on a fee at closing of $25.00 which of course the buyer could not pay. do the lender had to pay the added cost. Where’s the control for this Mr Dodd Mr. Frank? Title companies will learn this and make a habit out of it with larger amounts, and inevitably will add to the buyers closing costs one way or another. TRID is the excuse now for everything from a lenders and title/escrows standpoint. We can’t close because of the TRID guidelines. The funds did not wire because of TRID. My kid didn’t make it to football practice because of the TRID. I can’t tie my shoe because of the TRID. More seriously locks are running out due to TRID, buyers are more confused than ever regarding the closing statement, it has made closing a home harder, buyers are getting frustrated and canceling transactions, and the whole Dodd Frank bill needs to be repealed. There’s not one person or group Dodd Frank has helped but FNMA and its’ subsidiaries. Getting tired of the government getting in the way of everyone making a good honest living. Time for a true leader to come in and get the government out of my Cheerios.

    Kevin O'Brien December 3, 2015 7:04 am Reply
  • I’ve had 3 TRID purchase closings, and all 3 involved significant drama, primarily due to differing opinions between the closing agents and our closing department. On one, the buyer’s agent was giving my buyer a portion of her commission as an allowable contribution to closing costs. TRID requires each credit to be specified as paying certain fees, but no one could figure out how to list agent paid closing costs on the CD. My buyer had to give up $2400 in credit and close 2 days late due to her agent trying to be a good person. Our closing department is asking for a single draft CD with both seller/buyer sides shown, which doesn’t happen if there are separate settlement agents. Bottom line, lots of increased drama for lenders, settlement agents, sellers, and buyers. No one wins here. There was no Dodd/Frank mandate to revamp the closing process, just the GFE/HUD/TIL. CFPB destroyed the village in order to save it.

    Ted Rood December 3, 2015 7:45 am Reply
  • It’s the INTERPRETATION of TRID by closing attorneys that I’ve seen so far. The last closing I had the title attorney refused to give the agents settlement statements. We could not compare the prices and fees on the contract with the settlement statement. They let us sit in the room at the closing but not at the table. They asked our clients if it was ok that we were in the room. Unbelievable.

    Dana MacCord December 3, 2015 8:08 am Reply
  • TRID = Delays, wasted money for sellers, buyers, and lenders. Makes no sense for anyone involved. Way to go Government. Try reaching out to Americans involved in the business before you make a knee jerk reactions and change rules that don’t help any parties involved.

    Tony Ferrari December 3, 2015 8:29 am Reply
  • I have had 3 TRID closings thus far. The first one was perfect, no delays. Settled timely and client was happy. The other 2 had last minute compliance issues that delayed closing a day. The Lender was simply working through some of the bugs. No big deal. BUT…here’s the big deal: The Closing Disclosure is awful. Every single client was confused and didn’t feel the document enhanced the closing. Truthfully, the HUD 1 was a brilliant document. Perfectly designed…with a sensible flow…and simple to understand. Perhaps page one of the CD could have been added to the HUD 1 and that would have been fine. This new document is not doing the homebuyer a service.

    Larry December 3, 2015 9:22 am Reply
  • Did no one see Rob Chrisman’s report from November 28th. The affect TRID will have has yet to be seen. And the issues…Well lets just start with the aggregate adjustment they forgot about. Need I say more. CFPB has no clue.

    Perry December 3, 2015 2:36 pm Reply
  • Trid has been a nightmare and caused our company significant delays in meeting closing dates. This is a nightmare!

    David Fleming December 11, 2015 3:46 am Reply

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