One out of every five home purchases are being impacted as a result of new requirements from the Integrated Disclosure Rule, a survey of buyer real estate agents suggests.
New integrated disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act impacted loan applications taken on or after Oct. 3.
Prior to the implementation of TRID, warnings were issued by the mortgage industry and real estate-related groups about how TRID requirements could end up delaying closings.
The concern was with the Closing Disclosure, which would add at least three days to the process if there were a change in the loan terms.
But less than three weeks after the implementation of TRID, mortgage firms began reporting closings — signaling that concerns were potentially overblown.
However, a national survey of real estate agents and brokers who only handle buyers indicates that 20 percent of
of closings are being impacted by the rule.
The impact is mostly delayed closings.
The survey was conducted by the National Association of Exclusive Buyer Agents. Results were announced Tuesday.
Agents have reportedly been preparing for TRID by educating themselves through classes or workshops.
Some say they have been advised by lenders to expect closing time tables to lengthen to 45 days from 30 days.
Others say they have been warned to expect further delays until everyone in the process is more experienced with TRID.
