Photo credit: Scott Lewis
With many talking about what to expect starting October 3 and with much of this talk centering on what NOT to like about the changes, there are many who think that the new mortgage disclosures, officially known as TILA-RESPA Integrated Disclosures (TRID) are not only about appeasing regulators but it’s an opportunity for lenders to better engage with clients.
Four reasons for lenders to look forward to the new mortgage disclosures.
- Customer Touch points
There are more possibilities for lenders to interact with borrowers. Because most consumers won’t be too familiar with the new timelines, providing a clear outline of when a customer can expect to hear from a lender is important. This makes it easier to be more proactive and provide consistent communication with your customers, which presents your company as having greater customer service, which will build trust and loyalty.
- Stronger relationships with REALTORS
The new mortgage disclosures mandate that the lender is now responsible for the accuracy of the final Closing Disclosure, a previous responsibility of the closing agent. This will provide an opportunity to work with the closing agent to determine who will prepare the disclosure, what information will be shared and who communicate with the borrower. While not required, this builds a stronger relationship and extra goodwill by keeping the real estate agents informed about the completion of the appraisal, title ordering status and underwriting approval. To underline how influential real estate agents are with customers, an unhappy borrower will mention it to their real estate agent. Future referrals could be affected.
- Borrower Trust You to Answer Questions
Lenders will be handling closing disclosure documents and will answer more questions from borrowers. Lenders should look at the Closing Disclosure, Loan Estimate and new Home Loan Toolkit booklet from the borrowers’ perspective and ask themselves potential questions a borrower might ask. Borrowers traditionally depended on the closing agent to handle document errors and may be unaware that the lender is now responsible for the accuracy of the final document. Consumers ultimately aren’t as concerned about who answers a question, only that the answer is from someone they trust.
- Informing Borrowers and Building Trust
Being transparent about borrower protection guidelines will help build loyalty and trust from the borrower. Clarify what has not changed while outlining what has. Let the borrower know about the support you offer while they’re making this large transaction.
Origination News. 4 Reasons Lenders Should Love TRID