Below is part of an article from National Mortgage Professional Magazine written by Phil Hall. I wonder about the statement that lenders can only recover 17 of the new cost. In the mortgage world and probably in every business world the cost is ultimately passed to the consumer. When the new appraisal process was put into place several years ago that process slowed loans down, developed a culture of diminished service and increased costs.
I am not opposed to change but I am opposed to change when I don’t see a benefit to the customers and there is an increased cost. This article went on to say that the loan process has slowed because of TRID – I am happy to say our loan process has speeded up because we found the banks who were prepared for the change. Here is part of the article:
It appears that loan transparency comes with a highly visible price tag: A new study fromSTRATMOR Group has reaffirmed that the changes brought by the TILA-RESPA Integrated Disclosure (TRID) rule has jacked up the price of loan origination.
“On average, since October 2015, TRID has increased lender back office fulfillment and post-closing costs by an average of $209 per loan, and lenders are estimating that only about 17 percent of those costs can be recovered through additional charges,” said Matthew Lind, STRATMOR senior partner and founder.
