TRID is having an array of effects on the mortgage industry. In some cases, it has led wholesale lenders to add fees to loans. While the fees may be small, they will add up over time. In other cases, lenders selling mortgages riddled with TRID errors have had to sell them as “scratch and dent” on the secondary market for less than their value. Each time this happens, the lender loses considerable profit.
A recent poll conducted by Inside Mortgage Finance found that while 31% of mortgage professionals reported no TRID-related closing delays, 21% responded that they were too embarrassed to report how long closing delays have been.
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