A survey of credit unions executives across the country indicates that recently implemented TILA-RESPA integrated disclosures have slowed the home-lending process.
Meeting the TRID requirements has added at least five days to the mortgage closing process, according to a majority of the credit unions executives who were surveyed.
Just over half blamed a
new lender workflow between title companies and credit union members and process-procedure refinements as the primary cause of the delays.
That was according to the results of a survey conducted by Callahan & Associates. More than 200 credit union executives in 46 states participated in the survey.
Over a quarter attributed the delays to compliance —
settlement, system, members and mortgage disclosure.
Loan origination and core processing systems that are ill-equipped to handle the necessary updates were cited as the primary cause of closing delays by 16 percent of respondents.
Just 6 percent of the group blamed an inability by their members to
provide documentation and other information in a timely manner.
“Open-ended survey responses noted timing issues with disclosures; difficulties integrating mortgage origination systems with core processors; and challenges with title companies, Realtors, and other settlement agents,” Callahan said.
But despite the barriers, nearly 80 percent of credit unions are still
able to deliver disclosures quickly without issue.
A fifth of the financial institutions, however, noted that
settlement collaboration, system, and member delays — as well as extra precaution to avoid TRID violations — have them delivering Closing Disclosures at the very last minute possible — three days prior to closing.
Among the group surveyed, 83 percent originated loans to hold in their portfolios. More than two-thirds actively originate for sale to Fannie Mae and Freddie Mac.
Just 11 percent of survey participants solely originate for sale to the government-sponsored enterprises.
