The implementation of the TILA-RESPA Integrated Disclosure (TRID) and associated regulations, which took place in October of 2015, was highly anticipated within the industry. There was much speculation that it would lead to a significant number of closing delays and increase the time from application to closing for many consumers. Now that we have been operating under the new disclosure rules for a few months we thought it would be a good time to check in and see what the impact has been.
We’re pleased to report that at AFR the transition has gone extremely well and the implementation of TRID has been an excellent opportunity to continue to serve our partners.
How Things Changed
Preparation for TRID began several months in advance of the new rules going into place. Our team looked closely at how to interpret the changes and new regulations and how the process would impact each department internally. Everyone at AFR from our Chief Operations Officer, to our Compliance and Legal teams were actively involved in determining the best way handle this transition.
According to Christopher Lafferman, Vice-President of Wholesale Operations, training was the key to success. “We tested team members to see where they were starting from in terms of knowledge and understanding about the new TRID regulations, and then used those results to guide and customize training in the areas where we needed to focus,” he said.
Our culture also set the tone for the positive implementation of the changes; from the top down TRID was seen as a positive for our industry, for the borrowers and for our organization. For example Chief Operations Officer Laura Brandao was excited about this change from the start. Lafferman noted, “She embraced it as hugely positive and a great opportunity; her enthusiasm trickled down throughout the organization as everyone followed her lead.”
Impact On Turn Times
Across the industry the reaction was that TRID would lead to delayed closings, but we refused to accept that as inevitable. Our team’s number one goal was to avoid any type of delays. We started by looking at the closing process and worked backwards to see how we could work within the new regulations without impacting closing times. We figured out how we could get everything required for the closing disclosures as early as possible in the process.
Initially there was a small lag, however within the first month AFR was back to pre-TRID turn times. Overall turn times are currently averaging 27 days from approval to Clear-to-Close, which we consistently hear from partners is far below industry averages. Currently after a Clear-to-Close, refinances are being scheduled to close the next day and purchases in two days.
Reaction From Partners
The reaction from our partners has been overwhelmingly positive. We have heard, “AFR is closing loans faster than anyone in the industry right now” and “AFR is really making a name for themselves following the implementation of TRID.”
An added benefit to such a successful transition is that it has enabled us to earn additional business and continue to grow. Lafferman reports, “We have been able to be a resource to our clients – helping them prepare for the new regulations within their organizations.”
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