Despite costing up to $146 per loan, TRID improved consumers’ ability to locate key information.
The Consumer Financial Protection Bureau's assessment of the TRID Integrated Disclosure Rule issued a number of key findings, including the fact that the rule resulted in sizable implementation costs for mortgage companies. The assessment also found that firms reported increases in their ongoing costs. The CFPB noted that it is unsure whether these increases were attributed to ongoing trends or the TRID rule. "The TRID Rule appears to have created sizable implementation costs for lenders and closing companies," according to CFPB director Kathleen L. Kraninger. "Based on the industry surveys, a typical cost for a lender to implement the TRID Rule was $146 per loan originated in 2015, or roughly 2.0 percent of the average cost of origination. Similarly, a typical cost for a closing company to implement the TRID Rule was $39 per closing in 2015 or about ten percent of the average cost of closing. The TRID Rule appears to have decreased originations and increased closing times, but these measures returned to pre-TRID Rule levels in a relatively short period of time." According to the assessment, there were no potential effects on the range of market outcomes like interest rates or origination volumes. The TRID rule also provided a mixture of benefits and difficulties for consumers, however, it leaned mostly towards the positive side. "The evidence available for the assessment indicates that the TRID Rule improved consumers’ ability to locate key information, compare terms and costs between initial disclosures and final disclosures, and compare terms and costs across offers," according to the CFPB.
Source: National Mortgage Professional