It is quite the understatement that the new TRID requirements will result in significant changes to the home mortgage closing process. Replacing the important and long-standing Good Faith Estimates, HUD-1 Settlement Statements, and the Truth-in-Lending Disclosures will require substantial commitments of time and other resources. Indeed, studies have shown that, in preparing for TRID, 67% of lenders have increased in-house staffing or outsourcing of labor, and 82% are spending more on technology in 2015 than in 2014.
While major changes are almost always difficult, often times they can result in positives we do not see at the outset. And hopefully, such will be the case with TRID. Obviously it remains to be seen what will result from TRID and resultant changes. But undoubtedly, the transition to TRID will be most successful for those who understand fully all the changes it will effect, and also make the most informed and cost-effective moves in moving to the post-TRID world.
Whatever your specific role in the residential real estate industry – realtor, lender, loan originator, mortgage broker, underwriter, loan processor, or closing agent – you will be best served by acting with the utmost care and diligence. First, educate yourself as to TRID’s requirements and how they will impact the entire lending process – from the mortgage application to closing. Next, ask yourself what will be required to implement all changes as accurately and efficiently as possible. And finally, invest wisely to ensure the best practices for implementing all required changes.
Whatever your role in our industry, you should use this time of change to look at the entire scope of your operation. Be able to answer the questions of what roles need to be handled by individuals, and how many are needed for each. Also, understand what can be handled most efficiently by technology, and commit to an investment that can handle the present and also be adaptable for the future. When it is all said and done, you should feel comfortable that you are addressing all changes resulting from TRID, and in the process, creating a system for years to come.
As we all know, nothing is as constant as change. And this is especially true in the case of residential real estate. Perhaps now more than ever, we will find the truth of the notion that “failing to plan” is indeed tantamount to “planning to fail.” But by taking the appropriate steps now, you will place yourself ahead of the curve and in the best posture for the success you envision.
Source: Moving Beyond TRID: How to Automate TRID Compliance – And Your Entire Mortgage Workflow – Capsilon Corporation (www.capsilon.com/wp-content/uploads/2015/07/Capsilon-WP-Moving-Beyond-TRID.pdf)