May 2016 - Rise and Fall

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 56 of 67

TH E M R EP O RT | 55 O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T THE LATEST ANALYTICS "There's been a lot of speculation about TRID's impact and its value to consumers," said Brian Benson, chief executive officer of ClosingCorp. "Our new study of consumers who have bought homes and gotten mortgages both the new and the old way sug - gests that TRID is making it easier for consumers to understand the costs and fees that they'll face at closing. But at the same time, the new rules are adding time and anxiety to the closing process and more than half of the respondents still said they encountered 'unexpected costs, fees and surprises.'" The survey also showed that 64 per - cent of respondents said it was easier getting a mortgage under the old rules than under TRID, while 57 percent in- dicated that it took more time to close under TRID than it did previously. Despite the negative effects reported about TRID, homebuyers did report a few positives since the rule went into effect October 2015, indicating that the CFPB's rule may be doing its intended job. The actual closing of the mortgage loan was faster for 70 percent of home - buyers, while 19 percent indicated that it was slower, and 11 percent said it was about the same. ClosingCorp reported that 63 percent of buyers said the new "Know Before You Owe" forms for loan estimates and closing disclosures are easier to under - stand than the old forms. Meanwhile, 68 percent said the new forms did a better job preparing them for the clos- ing costs they would have to pay, and 6 percent disagreed. Another 65 percent of the respondents said the costs and fees were "explained better" in their most recent homebuying experience. Homebuyers stated that the ability to shop for title companies, inspectors, pest services, and other service provid - ers is another added benefit in the new TRID forms. The report showed that 78 percent of the consumers said they were informed about this option; 74 percent of those consumers said they took advantage of it, and 55 percent said they saved money as a result. "The findings suggest that our industry has more work to do to get comfortable with the TRID forms and processes, and to educate consumers and their advisors. Our clients and partners believe technology and inte - grated data and communications will provide the long-term solution to these challenges."

Articles in this issue

Archives of this issue

view archives of TheMReport - May 2016 - Rise and Fall