The survey also found that TRID has limited banks’ ability to offer a broad range of products -- one in four respondents said they have eliminated certain mortgage products, such as construction loans, adjustable rate mortgages or home equity loans as a result of the rule. In addition, 50% reported that they have either hired additional staff to comply with the rule, or plan to do so in the future.
ABA EVP Bob Davis said:
It’s clear from this survey and our discussions with bankers that TRID compliance remains a significant concern. Consumers are seeing the greatest impact due to increased loan costs, fewer choices and delayed closings — and that’s not what this rule was intended to do.
ABA had called for a “hold-harmless” compliance period after TRID took effect, warning that the technological platforms bankers use to process mortgages would not be ready by the deadline – a prediction borne out in the survey, which found that nearly half of bankers have had to make more than 10 upgrades to their loan origination software since October. More than 70% said they are still waiting on updates from their vendor, and 83% are using manual workarounds due to software problems, resulting in slower service for customers.
View the survey results.