With just one month left before the October 3 effective date of the new TILA-RESPA Integrated Disclosure rule (TRID), preparation is underway for members of the industry, according to a recent National Association of REALTORS® Research survey.
More than 80 percent of respondents to the survey have undergone some form of TRID training, and approximately three-quarters (71.2 percent) rate their level of preparedness as average or better. The majority of respondents (35.4 percent) received broker-sponsored training.
In anticipation of the rule’s effective date, the majority of survey respondents (55.9 percent) plan to adjust their purchase agreements to accommodate longer contract horizons as a result of the transition. Respondents also reported:
• Developing plans with lenders and title agents (37 percent);
• Planning to adjust purchase agreements to include new contingencies (31.2 percent);
• Planning to share contracts and amendments sooner with lenders, title agents and closing agents (30.6 percent);
• Developing programs and /or handouts to educate/guide consumers on potential impacts/delays (23.8 percent).
Additionally, survey respondents plan to perform final or pre-closing walk-through inspections earlier (32.5 percent), perform inspections earlier (25.4 percent), or perform multiple final or pre-closing walk-through inspections (17.2 percent).
Just over one-fifth of survey respondents (21.5 percent) do not know what steps they will take.
Recognizing the transition will require cooperation among transaction partners, 75.1 percent of survey respondents are confident that the title companies they work with are prepared; 65.1 percent are confident in their lenders. Respondents indicated just 9.1 percent of closings over the 12-month period ending in July were delayed due to an issue in the lender’s process. The delay averaged 6.6 days.
In June, the Consumer Financial Protection Bureau (CFPB) proposed delaying TRID’s effective date to October 3, citing a need for additional time as businesses transition. Initially, the effective date was August 1.
Regulatory compliance is among the topics to be discussed at RISMedia’s Real Estate CEO Exchange, now sold out, taking place Sept. 16 and 17 at The Yale Club in New York City. This year’s event will take a realistic look at the current and future state of the brokerage business, revealing high-level strategies for building sustainable success.
For more information, visit www.realtor.org.
