Industry News

TRID: Lessons Learned from the Trenches

December 10, 2015

When the TILA-RESPA Integrated Disclosures rule, better known as TRID, entered the mortgage industry a few months ago, we expected lending delays and giant hurdles to jump over during the closing process. However, it has not been as disastrous as we anticipated. Why? Preparedness. Thanks to training, a will to learn and having the best team in the business, Ross Mortgage has been well prepared since day one.

After completing our first few transactions under these new guidelines, we have captured a few key takeaways and best practices that real estate professionals should take to heart.

Find a Prepared Lender

First and foremost, make sure you’re dealing with a lender that is capable of disclosing information about TRID. Your lending partner needs to be fully prepared to navigate the new closing processes. Our loan officers are more than prepared, which has resulted in shorter anticipated delays, if any. Even with the rollout of TRID, we’re underwriting and closing loans on a timely basis. Yes, the new process and timeline is a bit different than it was before TRID, but we’ve already become acclimated to the new way of business.

Make Sure Your Lending Estimate Is Accurate

We’re extremely reliant on our technology to produce an accurate lending estimate. Like our loan officers, we made sure that our loan origination system was up to date and prepared as well. There are other systems and companies out there who were not prepared to produce disclosures, so they’re trying to outsource the process or do it by hand, causing flaws, inconsistencies and delays in the closing process.

Be Thorough

It may seem like common sense, but thoroughly looking over your disclosure agreement is huge. Many real estate companies are now required to list an accurate description of the entire transaction. The description must include all fees, whether they’re fees that the real estate company is collecting, commission or processing fees. Possessing a clear picture of what their fees and charges are as early in the process as possible is helpful. Since TRID has extended closing times, it’s smart to list all possible fees in the closing paperwork early on so all parties are aware. This will help avoid an uncomfortable conversation and changing things in the agreement.

We promise to keep everyone informed about the future changes as TRID becomes a better-known facet of the mortgage industry. If we’re able to find a better and more effective way to work though the regulatory requirements, we will do so.

Want to learn more about TRID? Contact a Ross Mortgage loan officer today to gain a better understanding.