Revisions to TRID Rule?

In the News   Presented by Prairie Title  

June 27, 2016

         

TRID Changes Coming in July?

 

By Frank Pellegrini, Prairie Title CEO   

 

I know it seems like we’re beating a dead horse (apologies to our dearly departed equine friends), but TRID is the subject matter that just won’t go away. On April 28, CFPB Director Cordray wrote to industry trade groups that, “We believe that there are places in the regulation text and commentary where adjustments would be useful for greater certainty and clarity.”

 

Cordray expressed hope that action would be taken by late July without specifying the issues the agency would address. In the title business, we have been in conversations with CFPB about changing the rule to ensure consumers receive accurate, clear information about title insurance costs.

“ALTA appreciates Director Cordray and the CFPB stepping up to the plate and committing to provide more clarity on TRID,” said Michelle Korsmo, CEO of ALTA. “We value their openness in this process moving forward. We are committed to continuing our conversation with Director Cordray and the CFPB staff to correct the calculation of title insurance policy premiums.”

Since the Cordray letter, a bipartisan coalition has emerged in the U.S. House that is urging the CFPB to “ensure that your new forms serve as a credible source of accurate information about the true costs of buying a home for consumers.”

In other D.C. news, ALTA has joined a group of the nation’s largest real estate trade associations to push for cuts to Fannie Mae and Freddie Mac fees. In a June letter to the Federal Housing Finance Agency, the group said the fees that Fannie and Freddie charge lenders to guarantee mortgage loans serve as a tax on consumers, preventing some potential borrowers from becoming actual borrowers.

I agree that it’s time to eliminate the fees that were instituted in 2008 in the wake of the housing crisis and subsequent major financial troubles faced by Fannie and Freddie. The two agencies have been stabilized and the fees have become an obstacle to homeownership.

I urge you to to contact your representives in Washington to ask them to get behind these critical  initiatives to improve the home buying process.

Let’s keep the discussion going. Call or email me, or write a comment.

Other stories we’re following:

Storm brewing in commercial real estate?                        Dems join house push to recapitalize GSEs.

 

Homebuilders can get loans, but where to build?                                    New home sales reverse course.      

Is Housing Gaining Traction?

In the News   Presented by Prairie Title  

June 1, 2016         

TRID Bumps along; Housing too 

By Frank Pellegrini, Prairie Title CEO 

I find it informative to follow the voices of those in the media who really know real estate inside and out. Two of those real estate media pros, Ken Harney and Diana Olick, are typically spot on in their assessments of the market and real estate industry issues in the short term and the long run. 

Harney, syndicated by the Washington Post, recently wrote an article whose premise was that implementation of TRID is delivering mixed results for professionals and consumers. He noted:

“A new study gauging consumers' experiences before and after the new rules took effect suggests that things may be looking up. It found that 92 percent of buyers are taking time to review their mortgage documents in advance of the settlement — making use of the three days they're now allotted to do so.” That study was conducted by the American Land Title Association. 

Citing another survey, Harney said, “Buyers also were pleased by being encouraged to shop for settlement services such as title insurance.”  I was especially happy to read that. We are actively encouraging consumers to shop for title services and I’m glad that approach is taking root. 

Lenders fees have increased to cover the additional costs at their end, and the average time to closing has increased (and now stabilized). For consumers, Harney’s bottom line was: “Be aware of the pluses and minuses of the rule changes. Expect greater transparency about costs — and more time to check them out — but also maybe a little longer time to close and increases in fees.” 

Olick is a featured reporter on CNBC who writes about day-to-day real estate activity more than the longer term trends Harney typically dives into. She is a great resource for the facts and figures that drive the trends in the industry. Among other analytics, she has recently focused on pending home sales, the shortage of existing homes for sale and the driving forces behind increasing mortgage applications, pointing out the fits and starts we continue to experience as housing bumps along. 

We regularly Tweet Harney’s and Olick’s observations and I would encourage you to follow them as well. Or simply follow Prairie Title on Twitter and we’ll provide that information for you.

Other stories we’re following:

Who’s Afraid of TRID risk?                                    Housing Prices Increase more than Expected.

 

Home Buying Drives Mortgage Apps.                         ommercial Sales Subdued in First Quarter.