The American Bankers Association (ABA) said yesterday that banks are having a hard time in complying with the Consumer Financial Protection Bureau’s (CFPB) 2015 TILA-RESPA Integrated Disclosure rule, or TRID.
The February 2016 survey had found more than 75% of the 548 bankers who completed the survey were having delays in mortgage closings with an average delay of 8 days, and a range of anywhere from 1 to 20 days. Over 90% said that front-boarding and loan processing times have gone up.
25% of those surveyed said they have eliminated certain home loan products such as construction loans, adjustable rate mortgages, home equity loans, or payment frequency options because of the lack of clarity with TRID.
The ABA survey found that 78% of the banks are still waiting for system updates from their vendors, and 83% are forced to use manual workarounds. About 50% said their bank will have to, or have already hired additional staff to comply with the new rule.
94% believe the TRID good faith grace period should be extended.
ABA executive vice president, Bob Davis had 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.”
“As we anticipated, our bankers are struggling to comply in part because the systems being provided by vendors are incomplete or inaccurate,” said Davis. “The causes of many of these systems problems are ambiguities in the TRID rule that require resolution.”