If you've looked into buying a home in the past few months, there's a four-letter word you may have heard a real estate agent or mortgage professional use: TRID. That's the new 2,000-page documentation and disclosure regime put into place last month by the Consumer Financial Protection Bureau (CFPB), designed to give borrowers a better idea of their costs and provide a more rigorous disclosure schedule. Known to consumers as "Know Before You Owe," the forms include many potential hurdles that lenders were worried would bog down and delay the mortgage process for many borrowers.
A little over one month in, have lenders' worst fears been realized? Or were worries about the new forms and delays overblown? Washington Post housing columnist Ken Harney takes an early peek at the results by asking industry professionals across the nation, and the results are a bit mixed. He finds that in some cases delays are being caused by the very paperwork slip-ups that lenders feared. In other instances, it appears that industry processes are to blame, with frustrated agents and borrowers concerned that communication between lenders and vendors (title, appraisal, etc.) isn't up to par yet.
However, in other cases, Harney finds that mortgage deadlines are being met without additional hassle. An industry survey backs this view up; however, Harney cautions that the next few monthly surveys should give a more accurate picture of how mortgage firms are adapting to the new forms. His final words of advice to potential buyers and sellers is simple: make sure your mortgage and real estate partners have their act together when it comes to "Know Before You Owe."
We will be keeping a close eye on the future data that will show how TRID is really affecting the mortgage process.