Most title professionals will be prepared when the Consumer Financial Protection Bureau implements its TILA-RESPA Integrated Disclosure rule on Aug. 1, according to the American Land Title Association.
TRID integrates forms required under the Truth-in-Lending Act and Real Estate Settlement Procedures Act.
A survey conducted last month by ALTA concluded that 92% of the title agents, underwriters, real estate attorneys and abstracters will be ready to implement the forms and comply with the regulation, ALTA CEO Michelle Korsmo said in a statement.
“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,” she 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.”
For most consumer mortgages, the current Good Faith Estimate and early TIL disclosure will be replaced by a three-page Loan Estimate; the HUD-1 and final TIL disclosure by a five-page Closing Disclosure.
Among the biggest concerns of title professionals preparing for the forthcoming disclosures are collaborating with lenders and real estate agents and potential closing delays, the survey says.
A majority (87%) indicated they believe the mortgage disclosures will cause delays for estate closings for consumers due to changes at the closing table, walk-through issues, and lender and real estate agent collaboration issues, among other reasons. Only 5% don’t believe TRID will affect closings and 8% are unsure.
More than 65% of those surveyed believe the new disclosures will not progress the CFPB’s goal of helping prepare and educate consumers on the costs of buying a home. This they owe to potentially inaccurate disclosure of title insurance premiums, new forms highlighting the costs but failing to explain them and being overwhelmed by details.