News this week is indicating that TRID, also known as “Know Before You Owe” is actually having the effect intended: homebuyers are actually reviewing their mortgage documents. Instituted by the Consumer Financial Protection Bureau, the TILA-RESPA Integrated Disclosures (TRID) rule is having a positive impact on the mortgage industry.
Housingwire reports that despite initial anxiety and headaches anticipating a switch to new forms combined with a requirement to provide disclosures within a specific time frame – or else, the program is working as designed for consumers. Quoting a recent survey done by the American Land Title Association, HW reports that a “significantly larger portion of homebuyers are actually reviewing their mortgage documents prior to closing than they were before TRID’s implementation in October.” Numbers quoted from the survey put the increase at about 20%, taking the total from 74% before the program to an impressive 92% currently.
A new report from Ellie Mae also shows that the time it took to close all loans dropped down to a 44 day average in March, which is the shortest time to close since that same month last year.