TRID. This acronym of acronyms has generated much fear and confusion for those in the mortgage industry. October 3 is the new compliance date and, as it looms closer, more and more mortgage professionals are realizing they are not ready for the TILA – RESPA Integrated Disclosures to come into effect. They are still searching for a solution.
Articles written about TRID often have headlines that sound like the authors are suffering from claustrophobia. They feel the pressure of zero tolerance crushing them into smaller and smaller margins for error.
How TRID Can Help Mortgage Professionals
As philosopher Thomas Carlyle once said, “No pressure, no diamonds.” TRID will force the mortgage industry to start working together in ways that it hasn’t had to before —with dazzling results.
The Current Mortgage Process is Redundant and Inefficient
For decades, each major player in the mortgage process has worked on loans separately, entering the same information into separate systems.
On average, this means multiple parties enter a borrower’s basic information 80 different times, according to Pat Stone, President and CEO from Williston Financial Group (WFG).
This fact alone creates a host of redundancies, inefficiencies and room for error – and is the source of many a delayed closing, miscommunication or other problems throughout the process.
TRID Will Help Mortgage Professionals Rethink Old Processes
Post-TRID, the lender must issue the homebuyer the Closing Disclosure three days before closing. In order for this to happen, everyone working on the loan needs to have the ability to collaborate on one digital file.
Instead of each entity working on their “version” of the loan, all appropriate entities will scrutinize just a single one, creating a much more accurate and compliant loan.
Then, when the Closing Disclosure is delivered to the homebuyer on time, they will have time to review the loan instead of being hit with it at the closing table. Efficiencies created by the single digital file will make for a cleaner process than a pre-TRID loan; borrowers, and all other parties, should have fewer problems and questions.
More accurate and compliant loans should lead to happier homebuyers, more referrals and, ultimately, more closings.
TRID may feel like an annoyance – frustrating and confusing in the beginning. But really, it’s a good thing that is forcing everyone in the mortgage industry to address inefficiencies and potential errors. Rather than crushing our workflows, TRID is forcing us to come up with solutions that will crush imperfections and create brilliant, sanitized loans. Loans that last.
Want to make your mortgage process easier and more accurate? Contact ATS Secured today.