TRID Delays Stabilize

The new TRID regulations continue to dog the market, but the impact moderated slightly in January. With the spring market beginning to heat up in February, lenders will be pressed to streamline their settlement procedures while REALTORS® will need to search out those lenders best able to close on time.

The average time-to-close as measured in days rose from 40.9 in February to 43.3 in January. Relative to the same time in January of 2015, the time-to-close was 5.3 days higher reflecting TRID-related delays. However, this year-over-year increase was a decline from the 5.7 additional days registered in December and suggests an improvement or at least stabilization.


The distribution of these delays also reinforces the trend seen in December. The share of settlements that took more than 45 days rose from 46.9 percent in December to 50.1 percent in January. This monthly uptick in January at the long-end of the distribution appears to be seasonal, but the increase relative to last year is wholly new and depicts a shift of 8.8% of market share to the 46+ day’s portion of the distribution under TRID, roughly the same as in December.


While delays due to TRID are potent and continue to impact the market, their impact is isolated to roughly 9 percent of settlements. Lenders will be tested in the months ahead as they attempt to streamline their processes and reduce delays in the face of higher volumes in the spring market. REALTORS® should seek out lenders who are collaborative and who have successfully navigated TRID without delays to assure smooth settlements in 2016.

Ken Fears, Director, Regional Economics and Housing Finance

Ken Fears is the Manager of Regional Economics and Housing Finance Policy. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.

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