So much has been written about TRID, you might be hoping it will pass into obscurity after its long, scrutinized moment in the spotlight. But that would be unrealistic.
The Know Before You Owe Rule Has Already Turned the Mortgage Industry On Its Head:
- Moody’s report stated that 90% of recently reviewed TRID loans had violations.
- News of delayed closings has circulated.
- Home sales have fallen.
- Lenders are cautious about liability.
- Investors are wary of compliance issues and now, many won’t buy TRID loans.
And it appears 2015 was just the beginning. These and other impacts on the mortgage industry will continue into 2016, so much so that we might call it the Year of TRID. Here are a few predictions to consider:
TRID Violations Will Decrease . . .
As the industry adjusts to the new rule, the number of violations will go down. The initial implementation phase for technicalities is always a learning process, as industry professionals get used to the new forms, policies and procedures.
But the Damage From Some TRID Errors Will Be Irreversible,
Even if violations are cut to 50% of loans instead of 90%, that is still a lot of violations. Lenders want to be able to sell loans for a profit, and if they have to sell half of loans for a fee to the GSEs, their profits will be cut significantly. This means lenders will need to scrutinize every loan at a granular, technical level, and will become extremely cautious of who they do business with.
And Private Mortgage Investors Will Become Very Picky.
On the secondary market, mortgage investors are becoming more aware of how TRID will affect them. They will not want to buy noncompliant loans, and will want assurances that TRID has been followed to the letter, or they will not buy.
ATS Secured Can Help With Your Mortgage Compliance
We provide solutions to the mortgage industry for these compliance issues. The ATS Secured Network empowers everyone participating on the loan file to collaborate on tasks, forms, communication and more with appropriate transparency.
Technical errors and issues are solved when the right entities can view and edit the loan file. Each action and change to the loan file is recorded for regulatory purposes, assuring the lender and investor that proper due diligence has been followed.
Don’t let the year of TRID negatively affect your mortgage business. With the right tools, it can give you a competitive compliance edge.
Want to make your mortgage process easier and more accurate? Contact ATS Secured today.