TRID: A 4-Letter Word for 'Slow'

By Dave Fratello | November 20th, 2015

If you haven't heard about TRID yet, consider yourself lucky.

If you have lived with TRID, then maybe you know. It's a bit like sleeping with a big, smelly bear. It may be a beautiful creature, but the damn thing just won't move.

Wait, Dave, what's that?

TRID is a package of new mortgage-transparency regulations. TRID is short for "TILA-RESPA Integrated Disclosure Rule." (You can go ahead and forget that, now that we've explained it.)

More disclosures, more transparency. Not a bad thing, right?

Nowadays, it is TRID, and the fear of TRID, that has mortgage lenders frozen in their tracks, doing everything twice, and twice as slow.

This week, we've closed two sales where loans weren't even literally required to be TRID-compliant, but TRID still horribly delayed closings nonetheless.

The reason seems to be simple: TRID has altered the bureaucratic flow at the banks.

And when your closings are late, and everyone is affected, and upleg sales start to come under threat, and the hair of many people is almost literally on fire, here is something that is of absolutely no consolation to anyone: "Sorry, but TRID has altered the bureaucratic flow at the banks."

Any loan initiated after October 1, 2015, is supposed to be TRID-compliant. This changes the disclosure process throughout, and especially at the end. But any loan subject to processing after October 1 has been impacted – sometimes a lot.

Those clean, 30-day escrows we used to see? You'll find those in the rear-view mirror.

Whether you're buying or selling between now and, say, mid-year 2016, know this: whatever the acronym really stands for, TRID is just another 4-letter word for "slow."

Better you should know now.

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