It’s interesting to see how TRID and added once again to the cost of getting a mortgage loan. Instead of risking a fee being off that triggers a re-disclosure, some vendors are simply raising fees across the board. If they wind up long they get the extra money, but if they wind up short they’re not affected.
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Here in Raleigh, what I have seen increase by almost double are the attorney fees! Under the new guidelines having to keep all the paralegals, processers under quarantine from agents and the public, most attornies either expanded their office spaceor had to undergo renovations to comply. Plus they are claiming the amount of paperwork has increased. These costs are all being passed off to the buyers fees. What I am not seeing very much is the extended time needed to close a loan. The "good" lenders were well prepared for TRID and are still turning their loans around in 30 days and sometimes less.
We have increased our lender fees this week for the first time in seven years. Per our owner, he is stating TRID is the reason. The fees for the additional staff due to TRID, and also post closing cures have required has required us to raise our processing and underwriting fees by a total of $245. Funny also appraisers are still making $325 per appraisal, but the cost of appraisals from the AMC since 2011 have gone from $375 to pushing $500 for a FHA or conventional conforming property appraisal. That is $800 more in fees between our increased lender fees, AMC increases for appraisals, and Escrow costs in the past year.
I am sure our rates are higher as well to cover the increases of staff and overhead to cover this consumer protection.
Escrow and Title Fees here in AZ have increased quite a bit. Not seeing Lender's Fees increase, yet. Appraisals have increased from $400 to $480 on FHA, but that was more fore the FHA change HUD make back in Sept.
We've seen an increase in doc prep/attorney fees by about $100, escrow/closing fees have jumped $50-100, and yes appraisal are up pretty much for the reason described in the video. So far we've held the line on our lender fees despite everything from tax transmittals to VOE's increasing in cost.
What the heck? Nobody figured this out beforehand? And then we have the NAR who gave TRID a great big HUG and Realtors STILL don't understand!
The first example is typically published in a newspaper and they get around the requirement for an APR because they are part of a "news" story, not an advertisement although they have all been charged to be in the "story". I have been approached with this several times.
You bet our escrow fees have gone up! The average increase of time spent per file, both pre-and post closing, is 2.5 hours. Compliance pressures have put too many cooks in the kitchen, and we spend much time wheel-spinning, trying to keep everyone in the loop, which may sometimes include the janitor…it's so hard to tell sometimes. The post closing compliance seems to be outsourced in many cases, or the compliance department is completely separate from funding, so we get requests for stacks of document copies post-closing, which require us to tear apart the file and scan, yet again, much of the same package that was sent for funding.
Only the FedGuv can cut our pay in half….. While raising rates and fees on the consumers.
Consumers need protection from FedGuv if you ask me….
do you just roll out of bed and do these videos….please shave