A home lender that ranks among the 20-biggest mortgage originators in the nation has reported no delays to its digital home loans as a result of integrated disclosures.
As the implementation of new Truth in Lending Act and Real Estate Settlement Procedures Act disclosures approached, many warned of two-week delays in closings.
Among them was the real estate industry, with groups like the Wisconsin Realtors Association
cautioning its members about carefully scheduling “stacked closings.”
But less than three weeks after the Oct. 3 TRID implementation, Movement Mortgage LLC reported its first post-TRID closing.
Less than a week later, Network Funding LP announced that its first post-TRID loan funded.
While the anecdotal accounts of loans closings are by no means proof that there haven’t been widespread delays, one large lender says it has seen no delays as a result of the Consumer Financial Protection Bureau’s new rule.
Guaranteed Rate Inc. — which ranked as the 16th-largest U.S. lender in the Mortgage Daily
Second Quarter Mortgage Origination Survey and claims to be the eighth-biggest retail lender– issued a statement indicating its closing times haven’t been hampered by TRID.
The Chicago-based mortgage banker recently announced that it “launched the world’s first digital mortgage.”
The program reportedly enables borrowers to close loans in 30 days or less.
“Our digital mortgage was successfully put to the test with the new TRID regulations,” Guaranteed Rate President and Chief Executive Officer Victor Ciardelli said in the statement. “We were ready for the TRID implementation and it has not slowed us down at all.
“Our loan officers have continued to close loans in less than 30 days.”
In his presentation last month at the Mortgage Bankers Association’s
Annual Convention & Expo 2015, CFPB Director Richard Cordray noted that there are only three narrow circumstances where a new three-day waiting period would be triggered for the Closing Disclosure.
The first is when the basic loan product is changed. The second is when the annual percentage rate changes more than one-eight of a point on a regular transaction or a quarter point on an irregular transaction. The third is if a prepayment penalty is “blatantly added to the loan.”
