December 04, 2015
The First Two Months of TRID: The Good, the Bad and the Opportunities
Exactly two months into TRID, three things are clear:
- Transactions are still closing on time and with less angst than feared.
- The educated consumer is on the rise, asking the real estate professional more and better questions.
- TRID can help attorneys, loan officers and real estate brokers grow their business by highlighting the fact that they are selecting lower cost providers for their clients and saving their clients significant amounts.
While any change, particularly a change as large as TRID, required effort—and sometimes significant effort—to adapt, it is clear that the banks and attorneys (and, yes, OneTitle too) were prepared and handled the transition with remarkably little fanfare. It all feels a bit like the angst over Y2K that accompanied New Year’s Eve 1999: it could not be ignored, but real preparation and advanced warning did the trick.
Some long-term implications, however, are coming into focus. First, TRID’s two simple forms are accessible and transparent, delivering the real estate transaction cost information in a way that’s clear to the consumer. While changing to new forms and new disclosures is difficult, expensive and time consuming for the industry, the new forms and deadlines are giving consumers the tools they need to understand the transaction.
Second, TRID is leading consumers to ask questions about cost. In New York, consumers are now required to actually review and sign the title bill to acknowledge that the title insurance fees are understood. This leads to either positive conversations about how attorneys, loan officers and others are looking out for their clients’ interests by choosing low cost and consumer-friendly providers or uncomfortable questions about egregious fees and high premiums.
Attorneys, loan officers and real estate agents are increasingly ready with answers. Many real estate professionals are proactive, quickly and succinctly explaining the transaction to their clients. Egregious fees are no longer passing muster. Costs in a post-TRID world are readily apparent and this new normal is on the consumer or investor’s side.
Finally, attorneys, lenders and real estate brokers are using the combination of clear simple forms and low cost providers to highlight the added value they bring to their clients. More than ever, the real estate professional is in a position to help a client prepare for the real estate transaction to achieve maximum consumer satisfaction and utilization of all available resources and protections.
Here are resources to share with your clients:
Homebuyer Introduction to Title Insurance
CFPB Know Before You Owe for Real Estate Professionals