Homebuyers Say Mortgage Process Harder, Longer Under TRID: ClosingCorp

Repeat homebuyers don't seem too thrilled with the impact the Truth-in-Lending Act/Real Estate Settlement and Procedures Act integrated disclosure rules have had on the mortgage process.

A new survey of 1,000 repeat homebuyers from residential real estate closing cost data and technology provider ClosingCorp found that 64% of respondents believe that the old rules made getting a mortgage easier. More than half also believed that the process under TRID takes more time.

Also noteworthy, 51% of homebuyers surveyed reported an increase in "unexpected costs, fees and surprises" during their most recent mortgage process experience, ClosingCorp said Tuesday.

"The new rules are adding time and anxiety to the closing process and more than half of the respondents still said they encountered unexpected costs, fees and surprises," ClosingCorp chief executive Brian Benson said in a news release accompanying the survey's results. "The findings suggest that our industry has more work to do to get comfortable with the TRID forms and processes, and to educate consumers and their advisors."

While plenty of homebuyers had their gripes, there were many who also found reason to praise the new TRID process. Many people prefer the new forms as 63% said that the new "Know Before You Owe" forms were easier to understand and 68% reported that the new forms are better at preparing applicants for closing costs. And more than three-quarters of consumers polled said they were informed about the ability to shop for providers, with a majority of them taking advantage of the option.

The survey also indicated areas that the mortgage industry needs to explore. In particular, of consumers not informed of the option to shop for services, 61% were female, indicating a gender divide on the matter.