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TRID

We went to the escrow holiday party on Friday, and I just had to sneak in some business talk.

Are the new disclosures causing delays in escrow closings, and messing up the buyers’ plans for moving in?

The answer from an escrow officer that does purchases only (not refinances):

Closing delays prior to TRID:  20% to 30%

Closing delays since TRID: 60% to 70%

Lenders had months to prepare for TRID, and it has been in effect since October 3rd.  Yet the majority of home sales are still being delayed due to disclosure problems.  Why?

It’s mostly because TRID has strict timelines for the sending and receiving of the disclosures.  The buyers cannot sign their loan documents until 3-10 days after the final disclosures are sent, and receipt acknowledged.

The disclosures are sent by loan-processing clerks who tend to be over-worked, and underpaid.  If they work for a lender who does their share of refinances, then timelines become hazy because all that matters is closing before the rate-lock expires (nobody is moving in or out of the house with a refinance).

We had a closing last week where we represented the seller. The buyer had made it clear that they wanted to move in this weekend, and get settled before the holidays, which is understandable.

Donna (wifey) monitors the lender’s progress regardless of who we represent.  It usually amounts to adult babysitting – some clerks don’t effectively manage their desk, they just respond to the requests of those who need them most.

It came down to the last day to send the disclosures in order to close on time, and the clerk rattled off the usual excuses – holidays, end-of-the-month, etc. – and wouldn’t make any promises about sending.  Donna tactfully persuaded her to find a way, and she did. We closed on time!

It’s not the disclosures that are causing the delays, it’s the people involved!

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