Survey: Consumers Still Report Slower Closings, 'Surprises' under TRID
Sorohan, Mike email@example.com
ClosingCorp, San Diego, said its consumer survey of repeat home buyers regarding the recently implemented TILA-RESPA Integrated Disclosure found most respondents said getting a mortgage had not become easier, with many reporting "surprises" at closing.
The survey of 1,000 consumers reported 64 percent of respondents said it was easier getting a mortgage under the old rules, than under TRID. Fifty-seven percent said it took more time under TRID than it did previously.
However, a similar percentage (63 percent) said that the new "Know Before You Owe" forms for loan estimates and closing disclosures were easier to understand than the old forms. Nearly seven in 10 (68 percent) said the new forms did a better job preparing them for the closing costs they would have to pay (6 percent disagreed). Similarly, 65 percent of the respondents said that the costs and fees were "explained better" in their most recent experience.But more than half (51 percent) of respondents also reported more "unexpected costs, fees and surprises" in their most recent experience.
"There's been a lot of speculation about TRID's impact and its value to consumers," said Brian Benson, CEO of ClosingCorp. "Consumers who have bought homes and gotten mortgages both the new and the old way suggests that TRID is making it easier for consumers to understand the costs and fees that they'll face at closing. But at the same time, the new rules are adding time and anxiety to the closing process."
The survey said respondents liked the ability to shop for service providers (title companies, inspectors, pest services); 78 percent said they were informed about this option and nearly three-fourths (74 percent) said they took advantage of it. Fifty-five percent said they saved money as a result.Additionally 70 percent said that the actual closing of the transaction was faster this time; 19 percent said it was about the same; and only 11 percent said it was slower.
"Our industry has more work to do to get comfortable with the TRID forms and processes, and to educate consumers and their advisors," Benson said. "Technology and integrated data and communications will provide the long-term solution to these challenges."
The ClosingCorp National TRID Impact on Homebuyers Survey was conducted via online questionnaire from February 11-18 by Wilson Perkins Allen Opinion Research and targeted 1,000 adults nationwide who have purchased two or more homes, including one since Oct. 3, 2015. The margin of error was +/- 3 percent.