“My biggest concern with TRID, however, is the increased amount of expenses put upon the lender and the service provider. New technology; training; increased staff; […] and, of course, increased resources put toward compliance all add up to higher costs throughout the industry. […] Will they build these costs into the mortgage where allowable by law?”
While it’s tough to see past the initial growing pains of the implementation of TRID, it is absolutely necessary to follow the true goal of the rule — to make the mortgage process simpler and more transparent for the consumer.
The TRID Challenge: Change For the Better
The rule represents the biggest change to the industry in decades. As of now, many are still scrambling to address the day-to-day logistics of TRID. Details like having to provide the Closing Disclosure Form at least three days prior to consummation or implementing new technology have put a strain on everyone involved in the process. Yet, some are trying to solve challenges of the future with an outdated mindset.
Joseph J. Murin describes the challenge well: “It’s about changing the way that lenders, settlement agents, brokers and even real estate agents interact and collaborate to push a sales agreement through to loan closing.” One of the many good things TRID has already accomplished is the increase in communication between the parties involved in the mortgage process, but there is room for improvement.
Innovation is key as firms continue to address TRID and improve the loan process for consumers. “Perhaps the many different firms charged with servicing a mortgage transaction will be forced to learn better and more effective ways to communicate and work together,” says Murin.
To reap the full benefits of the rule, remember to keep in mind the ultimate beneficiary of your efforts: the consumer.
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