Mortgage banks were more likely than other lenders to see a competitive advantage from the implementation of the TILA-RESPA integrated disclosure rules, according to the results of a survey from Fannie Mae.
While only a third of lenders surveyed reported that TRID created more competitive advantages for them, 46% of mortgage banks answered as such.
Similarly, 44% of larger institutions reported more competitive advantages as a result of TRID. However, nearly a quarter of credit unions said TRID worsened their competitive position.
As for the operational impact, 87% of lenders agreed that TRID implementation either significantly or somewhat affected the time it takes to close a loan. On average, lenders surveyed said it took seven additional days to close a loan, though more than 70% expected that time to shorten with experience.
Lenders were more mixed when it came to raising loan fees as a result of TRID. Forty-four percent either significantly or somewhat raised fees, while 50% saw no change.
No lenders, however, reported lower loan fees as a result. And that's not terribly surprising, since 49% of mortgage lenders
Fannie Mae reported that communication with key players such as the buyer or the closing agent was listed by 45% of the respondents as the first or second biggest challenge faced, outranking all other challenges listed.
The second most cited reason was managing relationships or coordinating with third-party technology vendors, which was listed as the first or second top challenge by 37% of lenders surveyed.
Of those citing trouble coordinating with third-party tech vendors, 78% reported still having challenges with their vendors post-implementation. When it came to switching vendors or making no change and working through the issues, there was an even split with 29% for each. Nine percent of lenders said they moved more of these responsibilities in-house.
