THE NEW ERA OF TRID



change ahead

10.7.2015 - Ken Perlmutter, Steve Laner

The new era of TRID, commonly known as “Know Before You Owe,” has arrived and Perl Mortgage, Inc. is both well prepared and well-practiced for the big changes. The TILA-RESPA Integrated Disclosure (TRID) Rule overhauls the way lenders disclose the details of a loan to borrowers. The Dodd-Frank Wall Street Reform & Consumer Protection Act mandating the TRID Rule is the most considerable act of legislation to impact the trade in nearly 40 years. The implementation has caused panic in the industry to meet the October 3rd deadline, but Perl Mortgage, Inc. has made a remarkably smooth transition.

So what exactly has changed about mortgage lending? Essentially, TRID consolidates four existing disclosure forms into two simpler forms: a Loan Estimate, which the lender provides the borrower within three business days after applying for a mortgage, and a Closing Disclosure, which the lender must provide to the borrower three days prior to closing. Now, a couple of new forms may not sound like a dramatic change, but for lenders it means extensive updates to software and procedures.

For people seeking mortgages, TRID is a step forward in the evolution of the lending industry. The new forms and time requirements were implemented to protect the consumer by creating greater transparency between banks and clients. The new disclosures are easier to read. They’re written in plain, straightforward language and the simplified formatting has the important information right on the first page. But more than that, the Rule decreases the permitted margin for error when disclosing fees and costs. Beforehand, miscalculations and discrepancies potentially cost the borrower, but now the buck stops at the bank.

Although TRID is a step in the right direction for the industry, other lenders are finding themselves ill-prepared for the changes. According to a survey conducted by the Consumer Financial Protection Bureau, “41% of mortgage companies [were] not prepared” to meet the original August 1st deadline and there are still concerns about meeting the newly imposed time constraints.

Perl Mortgage, Inc., on the other hand, has embraced the developments brought on by TRID. As a company, Perl took the initiative to work with software developers to update our systems accordingly and conducted extensive systems testing, verifying our TRID-readiness. On top of that, we have conducted months of company-wide employee training in preparation.

In addition to the simplified TRID forms, Perl Mortgage, Inc. streamlines the process of getting a loan with our digital Secure Loan Center. Our password protected website provides 24-hour access to information and provides the status of each loan. This time-saving resource breaks down the details and allows clients to quickly upload/download information, including time-sensitive documents. The Loan Center allows Perl to securely email the new disclosures to our borrowers and have everything set to close within the allotted three business days.

Perl Mortgage, Inc. is both prepared and excited to launch this program which better serves our customers. Whether you’re a homebuyer, a real estate agent, or industry professional, Perl is proud to offer the most current digital services and committed quality customer care. We believe doing the best for our customers is the same as doing the best for our business.