American Bankers Association Publishes TRID Study
The American Bankers Association has completed a survey regarding the TILA-RESPA Integrated Disclosure (TRID) Rule. The ABA survey had 548 banker participants composed a diverse group both in geography and asset size. The data was collected from February 1, 2016 to February 17, 2016.
This timely survey shows that TRID rule compliance:
- is still a relevant problem;
- continues to impose a heavy compliance burden; and
- causes customer dissatisfaction through delayed closings and increased fees and costs.
Specific findings include:
- Many banks have been forced to eliminate certain products, such as construction loans, ARMs, home equity loans, etc., as the rule does not provide adequate compliance direction
- Over three/fourths claim that TRID has caused loan closing delays anywhere from one to 20 days
- Approximately one quarter of respondents have increased the total cost to the consumer to obtain a loan
- About 50 percent of participants claim they have or will have to hire additional staff to comply with the TRID rule
- LOS systems are still being updated and changed as 78 percent of bankers report they are still waiting for system updates and 83 percent claim they are forced to use manual workarounds
- An overwhelming 93 percent claim uploading and loan processing times have increased as a result of TRID implementation
- A resounding 94 percent of bankers believe the TRID “good faith” grace period should be extended
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
Comments are closed.