TRID Delayed

By
Mortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 MMCD #1141
https://activerain.com/droplet/4Flb

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!

TRID delay

 

     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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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Sharon Alters 06/18/2015 01:10 PM
  2. Praful Thakkar 06/23/2015 08:37 PM
  3. John DL Arendsen 06/19/2015 12:53 AM
  4. Joseph Metzler 06/19/2015 03:12 AM
  5. Ginger Harper 06/19/2015 11:26 AM
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Ambassador
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

John, I have mixed feelings about this delay. Sounds similar to delay of Obamacare to me...  We may get a little breather for now but sooner or later we will have to deal with the changes for real.

Jun 19, 2015 11:22 AM #65
Rainmaker
922,313
Ginger Harper
Coldwell Banker Sea Coast Advantage - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

Why is the Wheel being reinvented....again?

Jun 19, 2015 11:25 AM #66
Ambassador
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Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Fourth of July is coming up... that is when we celebrate American Citizens overthrowing their bureaucratic, oppressive, tax-hungry Government.  

     I wonder what Samuel Adams, Patrick Henry, Paul Revere, Thomas Jefferson and other Patriots would think about the Federal Government of Washington D.C. today?

Jun 19, 2015 11:39 AM #67
Rainmaker
2,394,979
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I agree with your assessment.  Buyers aren't asking for more details about what they already know about.  It was created and devised by a committee who had nothing else to do. 

Jun 19, 2015 01:26 PM #68
Rainmaker
240,488
Malendaz Coleman
FLAT MLS LISTING SERVICES - Port Charlotte, FL
FLAT FEE MLS LISTING SERVICES - LIST LOW AS $69.00

"Out with the old, and in with the new" This will effect all levels of real estate and how real estate professional do business. Those who educate their self first, will benefit the most. 

Jun 19, 2015 01:58 PM #69
Rainer
374,507
Jana Holmstrup
Jana Holmstrup - CCO - Kings Mortgage Services, Inc. - Visalia, CA

Robert Sole TRID is the new TILA-RESPA Integrated Disclosure rule. Sorry! More acronyms!  Essentially a new set of disclosures and rules to replace lender's current disclosures and rules. (GFE, TIL, HUD1) What's important to YOU is that your services must now be labeled as "optional" on the Loan Estimat.  Hope that does not hamper your business 😣

Jun 20, 2015 02:27 AM #70
Rainer
266,220
Robert Sole
REM Inspections LLC - Winter Springs, FL

Thanks Jana.  Although many of these things do not have a lot of impact on my end of things, I do like to learn what I can about other aspects of the real estate market.  It is easy to get into using abreviations by assuming that everyone who reads the post knows what you are talking about.

I have to be careful about it also because many of the issues I find in homes a common to me and most of the realtors I deal with but are not to many of my customers.  I often catch myself mentioning things like GFCIs and then stop myself to explain what they are to my customer who is looking at me with a blank face.

Jun 20, 2015 03:14 AM #71
Rainer
333,502
Frank Castaldini
Compass - San Francisco, CA
Realtor - Homes for Sale in San Francisco

I have pointed out that lenders should have proided loan docs many days in advance of a buyer signing them.  Most of the time they are provided at the title company with little or no time to read them much less understand them.  Why have lenders done this?  It's a good idea to have these documents well in advance and should have been provided long ago.  Most of what's in them is boiler plate with a few particulars added regarding the rate and terms.  I believe lenders brought this upon themselves.  

Jun 20, 2015 10:40 PM #72
Rainer
285,671
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

TRID delay, a hot topic this week. All the language will protect the lender but what will it do for the consumer? I think we know the answer...

Jun 20, 2015 11:35 PM #73
Rainer
219,730
Greg Mona
Faira Homes Corp - Scottsdale, AZ
Real Estate in the 21st Century!

John Meussner Now that I have been through two short classes and recently a 3 hour CE class on this one topic alone, it is not surprising the rollout will be delayed. Many lenders, title/escrow companies, etc still do not have the software in place to accommodate the new forms and for those that do there was little chance to really test them out before August 1 anyway. While the delay may help the mechanics of getting this new way of doing business going the one thing I have a big problem with is the forms are universal to all 50 states! With the nuances of each state's way of doing business when it comes to real estate transactions, who decided a "one size fits all" approach makes sense?!  We will survive this change as we have the past ones, but jeez, change is supposed to be for the better, not just for change sake. 

Jun 21, 2015 02:26 AM #74
Rainer
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Nikitas Kouimanis, CMPS®
Associated Mortgage Bankers - Ronkonkoma, NY
Call Mr Mortgage @ 516-206-0000!

Thanks for sharing I really enjoyed your blog post!

Jun 21, 2015 02:50 AM #75
Rainer
500,951
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear John,

More time for suspense.

Jun 21, 2015 04:41 AM #76
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Thanks for all of the comments, there's a lot more to be said about TRID (sorry about the acronym use Robert Sole , the intended audience of the article was real estate agents & mortgage folks...didn't spell it out because they're all aware of TRID already from news over the past several months)

 

Some folks mentioned TRID being necessary to protect consumers, but the issue is, simply...it won't.  I have no problem with someone having a couple of days to review closing documents, however I would expect real estate professionals, buyers, and sellers alike to accomodate that time in their contract negotiations....sometimes, lenders can get docs out in advance.  Other times volumes are so high and demands so  strong that it's impossible to complete an entire loan process in 27 days (factor in weekends, holidays, etc).....we all try to get docs out as early as possible, but it's not always feasible.  With TRID, there will be no more "We'll try to make this happen", it's just going to be "reschedule settlement for 3 days later".....I don't anticipate many delays, but those delays I do anticipate are not going to be fun to deal with for anyone. 

 

A while back I wrote a blog called "here a rush, there a rush, everywhere a rush rush" detailing how difficult it is to accomodate files with rush requests when volume spikes occur in the industry.....now, more than ever, we all need to work as a team to get things to the closing table, and we all need to be understanding of each others hurdles in doing so to do our part to make things seamless.

Jun 21, 2015 07:08 AM #77
Rainer
148,490
Jim Joeriman
Coldwell Banker Riviera Realty, Inc - Lacey Township, NJ
Helping Agents Reach New Heights

There is too much regulation.  Good intentions can turn into over burden and dis functionality.

Jun 21, 2015 09:14 PM #78
Rainmaker
522,816
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

It will cause delays no matter when they roll it out. As agents, if a home that is supposed to close by Dec 31 doesn't close until the next year...that could create an impact in our paycheck.  Moving it to fall was a smart idea.

Jun 22, 2015 01:13 AM #79
Rainmaker
981,221
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Another well written post!  Thanks for always staying on top of news like this.  Relaying in plain English to folks is key and of course understanding that time lines will have to be considered when writing a contract.  I'm going to use 45 days as my benchmark!

Jun 22, 2015 01:29 AM #80
Rainmaker
605,568
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

Consumers look at lender documents, roll their eyes, and sign.

They are getting that way with our 30-50 page contracts in this area as well.

It seems the only protection is to the lawyers who represent the lenders at this point.

Jun 22, 2015 11:41 AM #81
Rainmaker
16,530
Beth Brittenbach
Century 21 Schutjer Realty - Vallejo, CA

This is frustrating. I was in favor of delaying PENALTIES for failure to comply with TRID; not delaying implementation. If they are going to do it then let's roll it out and give the lenders, title companies, Realtors time to work through it and identify glitches/questions/conflicts, etc. Give the industry a chance to work with the system and identify and correct "bugs."  The reality is nothing changes in terms of educating and disclosing to the consumer. Those of us who are conscientous about trying to make sure the consumer fully undertstands the terms of their loan will continue to educate and explain as we have always done. This is just feeding the monster....but if we have to do it let's get on with it! Just give lenders a grace period on the penalty phase. 

Jun 23, 2015 05:26 AM #82
Rainmaker
777,305
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning John Meussner 

The one thing we can count on, in life, is change. We will have to adapt to those changes. 

Jun 23, 2015 09:44 PM #83
Rainmaker
738,540
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I looked at the doc's and they are not so bad; actually pretty clear. Frankly, I hated the old HUD 1 forms.

Sep 28, 2015 05:06 AM #84
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