Same Loan Costs, More Choices-We Are Defying the Odds

The implementation of TRID has had a significant impact on all lenders. In fact, a *recent article by Mortgage Daily reported that banks have actually eliminated product offerings due to TRID. They went on to say that the 2016 ABA TRID Survey found that some banks have specifically eliminated construction loans, adjustable-rate mortgages, home equity loans and payment-frequency options. But how have the changes affected consumers?

ABA's executive vice president, Bob Davis, said: "Consumers are seeing the greatest impact due to increased loan costs, fewer choices and delayed closings--and that's not what this rule was intended to do."  I couldn't agree more, and am grateful that I work for such a great company, who, from the beginning made it their mission to get through this transition as smoothly as possible.  Let's take a look at how Cornerstone Mortgage is defying this statement:

• Increased Loan Costs -  Yes, it is true, MBA estimates that each loan costs an additional **$160 due to TRID implementation.  However, Cornerstone has not increased any of it's fees to our customers. 

• Fewer Choices -  Cornerstone not only continues to offer the same programs, but we have also added a one-time close construction program, in which we can lend more than 80% of the cost of the loan.  

          This new program allows our customers to:

-Lock-in their rate early in the transaction and avoid extended lock fees.

-Pay closing costs once.

-Save money! 

• Delayed Closings -  We have added 3 employees just for the specific purpose of working the disclosure desk and we have added 4 people to the closing department.  So, we have the ability to close loans as needed when the borrower is prepared.  What does that mean?  If you are even thinking of looking for a home, get pre-approved.  This way we can make sure that we have all of the documents we need for a "clean deal."  That way, when you find the right home, you can jump on it! 

*Source:   "Banks Cut Programs Due to TRID
**Source:  TRID Cost Per Loan Reference