realtors® and the new closing process survey
DESCRIPTION
In October of 2015, the new TRID rules will go into effect changing the way closings are performed. NAR Research surveyed members about their awareness and preparation for the changes.TRANSCRIPT
Executive Summary
In October of 2015, the new TRID rules will go into effect changing the way closings are performed. NAR Research surveyed members about their awareness and preparation for the changes.
Highlights:
• More than 80% of respondents had taken some form of training on TRID
• In preparation, more than half of respondents will alter their purchase
agreements to include a longer time horizon.
• Over the 12‐month period ending in August, 9.1% of closings were delayed
due to an issue in the lending process, while only 1.2% were canceled.
• 71.2% of REALTOR® members rated their level of preparedness as average or
better.
Majcom3rd, DocUnddocredthe helpfinaREANARAugof twith
WhTRIDthethechaREA
jor changes ming in the mthe new TILcumentationder TRID, thecumentationuced. In addclosing docp consumersancial commALTORS® areR Research sgust of 2015he changes,h industry p
en asked hoD rules, 32.1ir first contair broker or nges from eALTORS® or t
are to the cmonths aheaLA RESPA Intn (TRID) will e current clon will be stredition, featuruments thats better unditment. To fe preparing fsurveyed me. Most REAL taking actioartners to sm
ow they learn1% of responact with the firm, while 3either the Natheir state o
losing procead. On Octotegrated be implemeosing amlined andres are addet are intendeerstand thefind out howfor these chaembers in eaLTORS® are aons and wormooth the tr
ned about thndents indicaissue came t30.1% learneational Assocr local assoc
ess are ber
ented.
d ed to ed to ir
w anges, arly aware king ransition.
he new ated that through ed of the ciation of ciation.
11.1
title wereaffili18.1
% learned a
company’s ae the next mated title an%, respectiv
bout the chacompaccou
In pre82.2%taken(webior browere attendeventlocal aseconcondu
affiliated witmost popularnd lenders wvely.
anges from tpany and lenunted for 8.3
eparation for% of respondn some form nar, class, eoker sponsorthe most coded at 35.4%ts run by statassociationsnd at 26.9%. ucted by lenth the agentr at 25.1%. Nwere next at
their title ders 3%.
r TRID, dents had of training tc.). Firm red events ommonly %, while te and s were Training ding and t’s firm Non‐21.2% and
WhwithREApurlongconof rwithhelpsigninspconlend
Res12‐of cissu1.2%Whadd
en asked abh the new TALTORS® plarchase agreeger timelinentingencies trespondents h their lendep smooth thnificant sharpections earntracts and ader earlier.
spondents inmonth perioclosings wereue in the lend% of transacen a closingded to the cl
bout their plaRID rules, 55n to change ements to re, while 31.2%o the contrahave develoer or title coe process, we plan to pelier or will pamendments
ndicated thatod ending in e delayed duder’s procesctions were c was delayeosing proces
ans to deal 5.9% of their flect a % will add act. 37.0% oped plans mpany to while a rform final rovide s to the
t over the July, 9.1% ue to an ss, while cancelled. d, the averass was 6.6 da
ge time ays.
REALLTORS® whoo took part inacpcwrethcbfiledcsko
n the survey high degreeonfidence inpreparation oompanies thwork with. 7espondents heir confideompanies asbetter, while igure fell to enders. Howistribution fompanies wkewed towaor high degre
y indicated e of n the of the title hat they 75.1% of rated nce in title s a “3” or that 65.1% for
wever the for title was more ards a “5” ee of
conresppartto 2
Whthethe cha22.5highrateor b
Theperandintr
REAtermthatthe the
nfidence withpondents givtner this rat26.6% for the
en asked hoir own prepaimpending nges under 5% gave theh “5” rating,ed their readbetter.
e new TRID rformed. Thed reduce theroduce burde
ALTORS®. Thminate somet the share opast. Furthir industry p
h 40.6% of ving their titing compareeir lender.
ow they ratearedness forOctober 3rd TRID, only mselves the while 71.2%diness as a “
ules will alteese changes volume of cens on lende
hese burdene closings, bof delayed cermore, thepartners and
tle ed
r
e % 3”
er the way cwill benefit closing formers, title age
s could delaut REALTORlosing has beey are workinmaking cha
losings are consumers s, but may ents, and
y or S® indicate een low in ng with nges to
contReseimplahea
Ken FDireckfea
tracts to helpearch will coementation ad.
Fears ctor, Regionars@realtors
p smooth thntinue to m of the TRID
Methodol
The NatioRealtors® instrumenselected m12th of 201closed on August wiresponses1.8%.
l Economics a.org
e transition.onitor the rules in the
logy
nal Associatemailed a snt to 57,140 members on15. The survFriday the 2th a total ofs for a respo
and Housing F
. NAR
e months
tion of urvey randomly August vey was 22nd of f 1,432 nse rate of
Finance