Skip to main content

ALTA Poll: More Than 90 Percent of Title Professionals TRID-Ready

May 12, 2015

An overwhelming majority of title professionals will be prepared for the Aug. 1, 2015, implementation of the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosures (TRID) rule, according to a survey conducted by the American Land Title Association (ALTA). The survey, conducted in April 2015, included more than 550 title agents, underwriters, real estate attorneys and abstracters.

“Ninety-two percent of our survey respondents indicated their company will be prepared to implement the new forms and comply with the CFPB’s regulation,” said Michelle Korsmo, ALTA’s chief executive officer. “The land title insurance industry has been a leader in preparing the real estate industry for the new disclosures and that is reflected in the preparedness of our members.”

The CFPB’s rule integrates forms required under the Truth-in-Lending Act (TILA) and Real Estate Settlement and Procedures Act (RESPA). For most consumer mortgages, a three-page Loan Estimate will replace the current Good Faith Estimate (GFE) and early TIL disclosure, while a five-page Closing Disclosure will replace the HUD-1 and final TIL disclosure.

When asked about title professionals’ biggest concerns while preparing for the new disclosures, collaboration with lenders and real estate agents, and potential closing delays top the list.

“For nearly two years, we have encouraged our members to initiate conversations with their Realtor and mortgage lender partners to ensure the implementation of the new forms is seamless for consumers beginning Aug. 1,” Korsmo said. “All stakeholders that participate in the transaction share the CFPB’s goal that these new disclosures help consumers better understand their terms when they buy a home or refinance their mortgage. Title professionals and lenders have been modifying business processes, upgrading software and training staff to comply with the 1,888-page regulation. ALTA has collaborated with the Mortgage Bankers Association and National Association of Realtors to host six industry education forums around the country, with a focus on ensuring real estate transactions continue to be closed efficiently and compliantly.

According to the survey, 87 percent believe TRID will delay real estate closings for consumers or result in closings taking longer to complete. Only 5 percent of respondents believe the disclosures won’t affect closings, while 8 percent are unsure. The top reasons given as to why closing delays will occur include:

►Changes at the closing table
Walk-through issues
►Small lender/credit collaboration issues
Lender/Realtor collaboration issues

According to the survey, more than 65 percent of title professionals believe the TILA-RESPA forms will not help the CFPB meet its objective of helping consumers understand or be better prepared to understand the costs of buying a home. The top reasons given as to why consumers might not understand the new Closing Disclosure include:

Inaccurate disclosure of title insurance premiums
New forms highlight the costs but do not explain costs to homebuyers
Too many details for homebuyers to grasp

About the author
May 12, 2015
Rocket Companies Reports Decline in Fourth Quarter Revenue, Projects Optimism for Future Growth

Despite revenue dip, mortgage giant sees increase in market share and advances in AI technology.

Feb 22, 2024
Broker Action Coalition Unveils Inaugural Board Of Directors

Newly formed nonprofit organization BAC announces industry professionals to guide its mission of legislative change and educational initiatives in the mortgage industry.

Feb 21, 2024
GSEs Report Strong Earnings

Robust performance marks growth for both Fannie Mae and Freddie Mac, despite a dip in home purchases.

Feb 15, 2024
Friendly Competition Joins Forces

The merger aims to enhance local fulfillment and sales support, marking Guild’s sixth acquisition since 2021 and expanding its licensed originators to over 2,100 amidst a challenging market.

Feb 14, 2024
Guild Mortgage Announces Acquisition Of Competitor Academy Mortgage, Bolsters National Presence

The strategic move will see Guild Mortgage enhance its market share and become the 8th largest non-bank retail lender in the U.S., welcoming over 600 loan officers from Academy.

Feb 13, 2024
Proprietary Capital-Led Group Acquires Multichannel Lender AFR

Colorado-based fund manager Proprietary Capital finalizes acquisition of American Financial Resources.

Feb 13, 2024