PARSIPPANY, N.J.–An overwhelming majority (97%) of agents nationwide were prepared for TRID, and have trained their office staff to support the completion and delivery of the new Closing Disclosure—but it’s clearly not popular, according to a survey of agents released by Secure Insight, a mortgage industry data intelligence analysis and reporting firm.
In a survey of 9,560 attorneys, title agents, escrow officer and notaries nationwide regarding the impact of TRID and the new Closing Disclosure on the settlement industry, the company said it found just about everyone said they are prepared.
“This level of confidence and preparedness came about with less lender collaboration than was expected, as 63% of the respondents indicated they had little or no training conducted by or with their lender clients, instead conducting their own meetings and training programs leading up to the Closing Disclosure launch date,” the company said. “Almost 83% of agents polled spent a few months conducting their own staff training to ensure that they could support lenders in the TRID requirement for earlier notification of closing costs.”
Secure Insight said that now that TRID is here and the new Closing Disclosure is being used, the reaction is “very mixed.” Survey respondents rated the impact of the new Closing Disclosure on business operations as “negative” or very negative,” fueled mainly by increased operational costs. More than 75% indicated that the new Closing Disclosure requirements have increased their costs of doing business, with 40% stating the cost increase was “significant.”
As to the new form’s impact on consumers, from the agents’ point of view it has not been as positive as perhaps the CFPB had hoped, according to Secure Insight. Nearly 60% of those polled feel that the new disclosure has not helped with efficiency and transparency, and that the impact has generally been “negative;” only 9% have seen the new form as a positive for the consumer experience, while the balance feel the “jury is still out.”