TRID Delayed
The new mortgage disclosure rules, commonly known as TRID has been delayed...
TRID Delayed
The day we've all been dreading has been pushed back a couple of months. The CFPB announced that implementation of the new discosures will not take effect until October 1, giving us all a few more months to worry about how many delays it'll cause for our business- yay!
The delay is supposedly an administrative hiccup, coupled with a weird explanation from CFPB director Richard Cordray about it not being a good idea to roll something like this out around back-to-school time. With that, I wholeheartedly agree. I also don't think it's a good idea to roll it out so close to Halloween though. Or Thanksgiving. Or Christmas. Certainly not the new year. They also shouldn't go breaking hearts around Valentines day...
Bottom line, this rule, and the new forms and regulations are something that should never go into place, but they will, because frankly, the CFPB has nothing better to do than fine lenders and make up new forms that consumers still either won't read or won't understand. I do think these new forms will be an improvement on the current "good faith estimate" which requires a doctoral degree and a 40+ hour course to completely understand and interpret.
What annoys me most about these documents is that they come in the name of 'consumer protection', but in reality, no one can force a consumer to read this documents, and even if you could, you can't force a consumer to understand them. A consumer still relies on a loan professional to explain these documents for the most part. A good professional will give them all of the pertinent information so that they fully understand the terms and costs of a transaction. A bad professional will gloss over the information that they don't want a consumer to ask too many questions about. There's no way around this.
Delaying the inevitable with TRID is actually pretty bad news. I think every professional, tech company, and all others involved in the industry are just about at a point where we want to say "bring it on" so we can learn how it'll affect our business, and we can simply adapt and get over it. This delay just adds a few more months of uncertainty. A grace period will still be needed too, considering no one is really going to know how much impact (if any) TRID will have on closings, and there are sure to be circumstances that fall in a gray area when it comes to delays, redisclosures, etc.
If you haven't signed up for a TRID webinar, or your title company hasn't yet offered a TRID course, rest easy, you still have time. For those of us ready to just get past this ridiculous regulation, this delay is a bit of a bummer. TRID is coming, like it or not, I'd rather it just get here already so the industry can focus on more important things.
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