Length of time to close mortgage loans going up
According to a news report from Ellie Mae, the average time it takes for new home buyers to close a loan increased 4 days since last October when the Consumer Financial Protection Bureau (CFPB) implemented its new TILA-RESPA Integrated Disclosures rule (TRID), commonly known as the “Know Before you Owe” mortgage disclosure rule. This makes the average time to close a loan 50 total days, up from 40 days just one year ago.
CFPB’s mission is supposedly to protect consumers, but its new rules are actually harming them. Home buyers experiencing TRID-caused delays are now facing higher closing costs because of longer mortgage rate locks or even rate extensions. According to a survey conducted by NAR, 10.4% of realtor transactions were delayed by an average of 8.8 days.
This is just another example of how Dodd-Frank regulation and actions taken by the CFPB are hurting, not helping consumers. Home buyers, lenders, and real estate agents should be able to freely engage in business without excessive government interference.