As the months pass since TRID (TILA-RESPA Integrated Disclosure) was implemented, the problems and unintended consequences of this new federal law keep piling up.
In a recent video published by the National Real Estate Post, additional issues were pointed out, including:
- Since the CFPB designed the Loan Estimate and Closing Disclosure forms to be extremely inflexible and do not have accurate labels or box for certain fees, auditors industry-wide are finding fault in the accuracy of Loan Estimates and Closing Disclosures.
- A recent sampling by Moody’s found that 90% of the loans they audited had TRID violations!
- Agencies and secondary market companies are rejecting purchasing loans with even the slightest TRID compliance issue. This could lead to increased rates (due to a lack of supply for new money), a freeze on lending, or even the disappearance of many lenders, all because of a lack of secondary market buyers of loan portfolios!
The full story is available for viewing by clicking this hyperlink: CFPB Responds to MBA Concerning TRID Issues