Monthly Archives: March 2016

Quality Control and Compliance

Mortgage lenders acompliancend brokers are more concerned than ever about . This has led to ever increasing loan production cost and has significantly lengthened loan turn times.
Thanks to TRID, the roles and responsibilities of the real estate closing process have been transformed. With the average time-to-close on the rise, real estate service providers – lenders, realtors and title/settlement agents – have embraced digital closing platforms to conduct fully electronic mortgage closings (eClosings). We’ve progressed to a point where most leading lenders in the mortgage industry are using powerful software solutions to streamline or automate individual tasks throughout the loan process. 
In this high tech world, a mortgage loan officer striving to understand the new processes, while providing quality service to the borrower, often finds him/herself, faced with last minute issues that have to be solved with old-fashioned diplomacy and ingenuity. Take for instance, the borrower that negotiated a sales price for the purchase of a home in which the seller agreed to pay $3600 of closing costs and finds at the closing table the cost only equal $2800. Good news for the seller, but the borrower feels cheated. What would you do in that situation? Cutting your fees wouldn’t help. One of my clients who found himself in that situation had the seller pay for a home warranty. In another case, the seller reimbursed the borrower for the cost of the appraisal.  
I would be interested to hear from you about your experiences solving this type of last minute issue that required the personal touch, knowledge and experience of a mortgage loan officer in the midst of all of this technology.

TRID Implementation

keep-calm-and-trid-on-2I have to admit that the results of the TRID implementation continues to confound me.  As those who have read this blog know, in the beginning, I didn’t expect TRID to have the impact it did.

A new survey of 1,000 repeat homebuyers from residential real estate closing cost data and technology provider ClosingCorp found that 64% of respondents believe that the old rules made getting a mortgage easier. More than half also believed that the process under TRID takes more time.

More importantly 51% of homebuyers surveyed reported an increase in “unexpected costs, fees and surprises” during their most recent mortgage process experience, ClosingCorp said.

“Time and anxiety is being added to the closing process and more than half of the respondents said they still encountered unexpected costs, fees and surprises,” ClosingCorp chief executive Brian Benson said in a news release accompanying the survey’s results. “The findings suggest that our industry has more work to do to get comfortable with the TRID forms and processes, and to educate consumers and their employees.

I know that a lot of you were surprised to wake to the news of the closing of W. J. Bradley. This came with no notice to their customers or to their employees. They blame the combination of TRID and the implementation of Encompass for their demise. I expect we will hear a lot more about this in days to come. Let’s hope this will be an isolated case.

While plenty of homebuyers had their gripes, there were many who also found reason to praise the new TRID process. Many people prefer the new forms as 63% said that the new “Know Before You Owe” forms were easier to understand and 68% reported that the new forms are better at preparing applicants for closing costs. And more than three-quarters of consumers polled said they were informed about the ability to shop for providers, with a majority of them taking advantage of the option.

Stay tuned.