» VISIT US ONLINE @ DSNEWS.COM
69
e TELA/RESPA Integrated Disclosure Rule ("TRID") takes
effect on August 1st, 2015. TRID is part CFPB's "Know Before
You Owe" campaign, which was designed to inform consumers of
key features and costs of their future mortgage. Although consumer
protection is a noble goal, every large-scale government action—
no matter how well-meaning in nature—is prone to far-reaching,
unforeseen consequences apart from those desired. TRID is no exception.
e Rule affects every aspect of the Default
Title Industry from foreclosing attorneys,
property servicers, title insurance agents, and
settlement service providers, though the latter
two are impacted the most severely. Tile and
settlement companies provide two key services
to consumers: first, preparing and issuing title
insurance to protect a consumer's interest in
real property and, second, facilitating real
estate transactions as a third-party neutral
between the consumer, the lender, and the
seller. Both of these functions fall under the
purview of the CFPB's new regulation.
e exorbitant cost of TRID preparation
and compliance alone has been enough to
put many title and settlement companies out
of business. ose companies which survive
are faced with decreasing revenue as lenders
conduct closings in-house to prevent third-
party liability. Is consumer education worth
these costs to the default industry? Perhaps.
Surely, though, stricter lending practices
would reduce the number of loans entering
default than will this round-about effort to
educate consumers through a new disclosure
format: a format which actually contains
Implementation will change the
default title business. Will compliance
costs kill off the little guy?
TRID TROUBLES
COVER
STORY
FROM
THE
BENCH
INDUSTRY
INSIGHT
INDUSTRY
INSIGHT
