Unlike some predictions, the mortgage industry did not implode once the Consumer Financial Protection Bureau’s Know Before You Owe mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures rule, went into effect on Oct. 3.
In reality, according to results from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, there was no clear trend of an impact across loan types, though many of the sales weren’t necessarily subject to the new TRID requirements.
HousingPulse tracks the share of home sales that close on time and the total average closing time for a variety of loan types.
“While there was apprehension about TRID, so far impacts are minor,” said Tom Popik, research director of Campbell Surveys.
Popik noted that measuring the effects of TRID is still in the early stages as many more TRID-compliant transactions are scheduled to close this month.
According to the survey, for home sales that closed in October, loans related to the Federal Housing Administration experienced a slight decrease in the share of mortgages that closed on time compared with September, from 59.4% to 57.1%.
For that same time period, the share of loans related to the Veterans Administration that closed on time increased from 60.1% to 65.5%. The survey noted that other loan types showed similarly mixed trends.
The total average closing time including delays for most loan types stayed relatively level or showed only a slight increase between September and October. This
This isn’t the only report saying that the impact of TRID is minimal for now.
According to the most recent Origination Insight Report by Ellie Mae, TRID has yet to significantly dent the origination process.
“It is still too early to see if there will be impacts stemming from the Know Before You Owe changes that went into effect just last month,” said Jonathan Corr, president and CEO of Ellie Mae.
“The time to close loans remained a constant 46 days for yet another month, while the closing rate on purchased loans has stayed above 70%. We may begin to see time to close increase in the November data as the new closing disclosures are utilized for the first time,” Corr said.
Companies such as Guaranteed Rate and Movement Mortgage have already come out and said official TRID loans have made their way through their origination process.
“We were ready for the TRID implementation and it has not slowed us down at all. Our loan officers have continued to close loans in less than 30 days,” said Victor Ciardelli, president and CEO of Guaranteed Rate.