Mortgage Defects Are Skyrocketing: New ARMCO Report Shows Critical Defect Rate Rising
As the mortgage industry approaches the one-year anniversary of the October 2015 implementation of the Consumer Financial Protection Bureau’s new TILA-RESPA Integrated Disclosure rule, there is little doubt that the impact is still being felt.
Early reaction from the CFPB suggested that the industry’s reaction to TRID was akin to the unfounded panic that surrounded Y2K, while other reports demonstrated the impact of TRID on home sales, mortgage closing times, and on borrowers themselves.One of the earliest reports about TRID’s impact on the loan process showed a startlingly high error rate in the first mortgages to be written post-TRID.
That report, from Moody’s, showed that TRID compliance violations were found in more than 90% of the loans reviewed by several third-party firms after TRID’s implementation.
It should be noted that most of the errors identified in the Moody’s report were merely “technical” in nature, and not serious.
Right, technical defects. Now, where have I heard that before…