March 16, 2016 – A survey of people who bought two homes – one before new truth-in-lending disclosure rules went into effect in October 2015 and one after – found that the lending process is easier to understand, but it’s tougher to complete.
ClosingCorp conducted the survey of repeat buyers to find out how the new TILA-RESPA Integrated Disclosure (TRID) rule impacts the customer experience in getting and closing a residential mortgage.
Major findings
- 64 percent of respondents said it was easier getting a mortgage under the old pre-TRID rules
- 70 percent, however, said that the actual closing day was faster post-TRID; 19 percent said it was about the same; 11 percent said it was slower
- In terms of the time it took to get and close a mortgage, 57 percent said it took more time post-TRID
- 63 percent said that the new “Know Before You Owe” forms for loan estimates and closing disclosures were easier to understand.
- 68 percent said the new forms did a better job preparing them for the closing costs; only 6 percent disagreed
- 65 percent said costs and fees were “explained better” post-TRID
- 51 percent, however, said there were more “unexpected costs, fees and surprises” post-TRID
- Respondents highlighted one consumer benefit with the new TRID disclosures: The ability to shop for service providers, such as title companies, inspectors, pest services, etc.; 78 percent said they were informed about this option, and 74 percent took advantage of it
- 55 percent of buyers said they saved money post-TRID due to the ability to shop around for services
- Of the respondents, more women (61 percent) said they weren’t told they could shop around for services than men (39 percent)
“There’s been a lot of speculation about TRID’s impact and its value to consumers,” says Brian Benson, chief executive officer of ClosingCorp. “Our new study of 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.”
According to Benson, “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 advisors.”
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