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  • TRID: A Year Later: The National Association of REALTORS® Research Division October, 2016

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    National Association of REALTORS®
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    • Delayed transactions fell from 10.4% to 8.5%, but cancelations edged up slightly from 0.6% to 0.7%. • 45.6% of respondents had problems getting closing disclosures down from 54.5%. • However, REALTORS® were more likely to request closing disclosures from title agents than lenders in the 3rd quarter, especially REALTORS® with greater transactions volume. • Delayed and canceled transactions cost consumers $410 and $226 on average, respectively. Rental and deposit expenses as well as lost vacation time accounted for most expenses.

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    • Delayed transactions fell from 10.4% to 8.5%, but cancelations edged up slightly from 0.6% to 0.7%. • 45.6% of respondents had problems getting closing disclosures down from 54.5%. • However, REALTORS® were more likely to request closing disclosures from title agents than lenders in the 3rd quarter, especially REALTORS® with greater transactions volume. • Delayed and canceled transactions cost consumers $410 and $226 on average, respectively. Rental and deposit expenses as well as lost vacation time accounted for most expenses.

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    2K views26 pages

    TRID: A Year Later: The National Association of REALTORS® Research Division October, 2016

    Uploaded by

    National Association of REALTORS®
    • Delayed transactions fell from 10.4% to 8.5%, but cancelations edged up slightly from 0.6% to 0.7%. • 45.6% of respondents had problems getting closing disclosures down from 54.5%. • However, REALTORS® were more likely to request closing disclosures from title agents than lenders in the 3rd quarter, especially REALTORS® with greater transactions volume. • Delayed and canceled transactions cost consumers $410 and $226 on average, respectively. Rental and deposit expenses as well as lost vacation time accounted for most expenses.

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    © All Rights Reserved
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    of 26

    TRID:AYearLater

    TheNationalAssociationofREALTORS
    ResearchDivision
    October,2016

    ExecutiveSummary
    TheTILARESPAIntegratedDocumentation(TRID)orKnowBeforeYouOweruleswentintoeffectonOctober
    3rd 2015.ThissurveyreviewsREALTORSexperiencesinthe3monthperiodpriortothe1st anniversarywith
    the3monthperiodafterimplementation(Q42015versusQ32016).Respondentsindicatethatsince
    implementation:

    Delayedtransactionsfellfrom10.4%to8.5%,butcancelationsedgedupslightlyfrom0.6%to0.7%.

    45.6%ofrespondentshadproblemsgettingclosingdisclosuresdownfrom54.5%.

    However,REALTORSweremorelikelytorequestclosingdisclosuresfromtitleagentsthanlendersinthe
    3rd quarter,especiallyREALTORSwithgreatertransactionsvolume.

    Delayedandcanceledtransactionscostconsumers$410and$226onaverage,respectively.Rentaland
    depositexpensesaswellaslostvacationtimeaccountedformostexpenses.

    ErrorsidentifiedonCDsrosefrom43.3%to50.6%.Missingconcessionsandincorrectnamesoraddresses
    werethemostfrequentlycitederrors,butincorrectfees,commissions,andtaxeswerealsoreported

    Largeretailbankswerefarmoreproblematicthansmalllenders,mortgagebankers,andnonbanks

    REALTORSnotednochangeinlenderswillingnesstosharetheclosingdisclosurefollowingtheCFPBs
    clarificationonCDsharinginlateJulyof2016.Legalrequirementsandconsumerprivacyweremost
    frequentlycitedwhensharingwasrefused.

    REALTORSContinuedtoEmployaCombinationof
    Remedies,butPulledBackonAdjustedAgreements

    REALTORSWhoPlannedforTRIDwithLenders
    EitherIncreasedCommunicationsorFocused
    TheirBusinesswithSpecificLenders

    DelaysEased*,WhileCancelationsInchedUpward

    *ThisperiodincludesthepostBrexitsurgeinrefinanceactivitythatproducedfinancingdelays

    RentalandStorageExpensesandLostVacation
    WereCitedasCostsforImpactedConsumers

    TheCostofaDelayWasNearlyTwice
    thatofacancelation

    REALTORSCostPerTransactionRoseby$154,
    WhileHoursWorkedNearlyDoubled*

    *Inventoryshortagesandseasonalitymayhaveaffectedpropertysearchesandhoursworked

    45.6%ofRespondentsIndicatedIssues
    AttainingtheCD,DownFrom54.5%,but

    HigherVolumeREALTORSReported
    BetterAccesstoCDs

    AndHigherVolumeREALTORSWereMore
    LikelytoUseTitleAgentsandWaiverstoObtain
    theClosingDisclosures

    LendersCitedPrivacyConcernsandLending
    LawsWhenNot SharingCDs

    TheShareofREALTORSReportingErrorsin
    CDsRosefrom43.3%inthe4th quarterof
    2015to50.6%inthe3rd quarterof2016

    Aswiththe4th Quarterof2015,REALTORS
    ReportedMoreProblemsinthe3rd Quarter
    GettingCDsonDelayedTransactions

    MissingorIncorrectConcessions,HOADues,and
    IdentifierInformationRemainanIssue

    Incorrecttaxes,commissions,escrows,andprorationofbillswerealsofrequentlycited

    REALTORSShiftedTheirCDRequests
    fromLenderstoTitleCompanies

    TitleAgentsMostHelpful,Clientand
    WaiversGainedWhileLendersRetreated

    LendersNotEngagingREALTORSto
    ScreenClosingDisclosures

    DespiteCFPBClarification,REALTORSNot
    SeeingImprovedSharingofCDs

    AccordingtoREALTORS,LendingRemained
    theLeadingSourceofIssuesUnderTRID

    LargeRetailLendersWereMost
    ProblematicAccordingtoREALTORS

    61.7%ofREALTORSRatetheNewSettlement
    ProcessasMoreDifficult

    WhatREALTORSSaid:

    Wearecreaturesofhabitandhatechanges.OnceIhadabout3closingsunderTRID,itallwaslike
    myfirstclosing13yearsago.Idon'tseeaproblemnow...

    InmyopiniontheTRIDguidelineshavereducedthecommunicationbetweenlendersandRealtors
    anditfeelslikeapushtokeepusoutoftheprocess

    Iworked23yearsbuildingstrongrelationshipsandthisnewTRIDexperiencehasremovedme
    fromalotoftheprocessmakingmefeelmyrelationshipsaresufferingasaresult.Therealestate
    industry,onwhole,issufferingfromexternalinfluencesandtheclientisultimatelytheonewho
    losesthatgreatservice.

    MyclientsoftengotscrewedbytheirlendersbeforeTRID.Theypaidoutrageousloanfees.This
    hasdroppedsignificantly

    Itshorrible.Veryconfusingfortheclientwhentheyaregivenvariousestimatesthroughoutthe
    process.Also,howcanusrealestateagentsprotectourclientswhenwehavetheabilitytoseethe
    closingdisclosuretakenaway?

    Mostoftheproblemscomefromagentsandbanksthatareunwillingtosharetheinformation
    becauseitis"illegal".Ispendalotoftimearguingthatitisnot,buyeragreestoshareitincontract,
    vsbankandotheragentsayingitcannotbeshared.

    ItpaystohaveverystrongLOCALtitleandlendingstrategicpartnersandbehonestwithbuyerif
    theyhavedecidedtousealargelenderoroutoftowntitleandtheissuesthatwehave
    experiencedinthepast.Mosteverytimewhentheydecidetogothisroute,attheendofthe
    transaction,theysaytheyshouldhavelistened.

    Only3.3%ofrespondentsHadClientsWhoHadProvided
    CommentstotheCFPBontheLendingProcess

    Appendix:
    SurveyMethodology
    ThesurveywasconductedfromApril6th to31st
    55,490REALTORSweresurveyed
    Responseratewas4.2percent

    QuestionscanbedirectedtoKenFearsatkfears@realtors.org

    NationalAssociationofREALTORS
    ResearchDivision
    http://www.REALTOR.org/researchandstatistics
    https://www.facebook.com/narresearchgroup
    @NAR_Research
    https://www.pinterest.com/narresearch/

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