Last year was eclipsed by preparations for implementing the TILA/RESPA Integrated Disclosure (TRID) Rule, without much to take away from it. On a national level, this will continue to be a focus for the title and settlement industries, as they work to address procedural issues stemming from the rule and work with lender partners to ensure closings go smoothly.
The goal of the new disclosures is to help consumers understand exactly what they are paying for, in a timely manner, so they can make the best decision on how to finance their home purchase. Overall, agents are saying this goal is being achieved regarding many of the fees the buyer is responsible for, except the title insurance premium. As we enter 2016, this issue may need to be addressed by the CFPB.
“I do think that from what we are finding, consumers easily understand the Closing Disclosure,” Diane Evans, vice president, Land Title Guarantee Co., said. “The challenge is making sure that the simultaneous issue rate works and doesn’t continue to cause confusion. Seller concession issues on purchase transactions are causing some confusion between the lender and the settlement agent as to how they should be disclosed.”
Frank Pellegrini, president and CEO, Prairie Title, agreed, saying his agency is getting a lot of inquiries from lenders asking for their assistance calculating the title insurance premium on purchase transactions when the seller pays for the principal policy.
For the rest of the story, and all the content and insight available in our 20-page 2016 State of the Industry Special Report, download your free copy of the report here.