Now that TRID implementation should be well underway in your lending office, what does that look like? What challenges have you faced? Prior to implementation, realtors felt ready for the changes. In fact, a survey conducted by the National Association of Realtors revealed that more than 80 percent of realtors had received training on this before the implementation date.
One thing that lenders are noticing already is that the length of time it takes to process a mortgage is extended. This obviously has impacted the consumer, too. Realtors have even helped to build this into expectations, explaining to potential buyers that purchase agreements have included room for possible delays.
The new measures are meant to make things easier for buyers by consolidating disclosures that were previously included in several separate documents. However, these changes have disrupted the industry quite a bit by requiring lenders to implement some new systems to calculate revisions, track fee changes, load the new documents into their systems, and train employees for meeting the timing deadlines.
While some of these might smooth out over time and ultimately be processed more quickly, right now it’s adding delays for all involved. Mortgage lenders are working hard to ensure appropriate handling of all documents within specified timeframes, but it’s not always easy.
This industry, however, is quite used to regulatory changes that require big and swift alterations in process. For those lenders using digital mortgage, it has been easier to factor in the changes required by TRID, but the use of digital mortgage is not clear across the entire marketplace. According to some research, it takes about one-third of average Americans to receive a loan approval for a house. Digital documents and processes, however, are changing that: initial credit decisions can come along as quickly as within the hour.
One thing lenders are noticing is that borrowers are now driving the process of lending. This makes it easier for fees linked to the transactions to be understood by all parties. A lot of apprehension and confusion about how the process works has also dissipated. Ultimately, what TRID looks like is a bigger shift in the industry regarding use of digital documents and processes to streamline things.
This makes it easier for lenders once a program has been established to adapt to the changes quickly. Using TRID as the initial opportunity to streamline could prove beneficial for lenders down the line when inevitable regulatory changes require new ways to do business. Ultimately, it can take some work to get these processes up and running, but it can pay off in a big way for everyone once they are properly implemented.