How These Credit Unions Learned To Love The New TRID Docs

The experience of two credit unions shows prepping early for the TILA-RESPA Integrated Disclosure form changes paid off.

The new TILA-RESPA Integrated Disclosure rule (TRID) has created much gnashing of teeth, but the changes haven’t been gnarly for all.

More than half of the 203 respondents to a Callahan & Associates survey said TRID has added five days to their mortgage turn time, but eight report no added delays at all. Somecredit unions said the process has even speeded up.


Data as of 12.31.15

  • HQ: Laurel, MD
  • ASSETS: $407.8M
  • MEMBERS: 20,084
  • 12-MO SHARE GROWTH: 2.71%
  • 12-MO LOAN GROWTH: 10.33%
  • ROA: 0.47%

That’s the case at APL Federal Credit Union ($407.8M, Laurel, MD), where lending manager Sean Manion says service-released loan turnaround time went from 51 days pre-TRID to the current 47 days.

And whereas credit union leaders cited collaboration and system delays as reasons for the increased time, it’s collaboration with system providers that has helped speed things up in Manion’s shop.

According to Manion, he received frequent updates from his technology providers and passed them along. They conducted multiple tests of different scenarios, and he stayed in touch with title companies and his mortgage CUSO to make sure they were all onthe same pages, too.

I updated my loan officers and loan servicers frequently on the upcoming changes, Manion says.

Such updates included how to educate themselves on the new disclosures and how to explain the disclosures to members. Topics also included how to properly populate form fields so closing costs were clear and accurate.

Things went so well from his perspective, Manion says, that APL was ready to roll with the new disclosures weeks ahead of last October’s deadline.

Connie Penoza also relied on a little help from her friends to make the TRID change less of a trial.


PENINSULA FCUData as of 12.31.15

  • HQ: Escanaba, MI
  • ASSETS: $128.2M
  • MEMBERS: 10,992
  • 12-MO SHARE GROWTH: 6.20%
  • 12-MO LOAN GROWTH: 3.02%
  • ROA: 0.42%

We went through a lot of training, watched webinars, and attended a few sessions our league put on, says the mortgage business manager at Peninsula Federal Credit Union($128.2M, Escanaba MI). We have seen no changes in how long it takes us to close a first mortgage or a re-fi. We were really prepared.

Penoza and her team also stayed in touch with title companies and other stakeholders, and she says the automation provided by her core processor removed a lot of the pain.

The forms are all inside there, she says. It’s all mapped and we haven’t had a problem, no glitches, nothing. Knock on wood.

APL had $133.01 million in real estate loans in its portfolio at the end of 2015, up 3.02% from year-end 2014. Peninsula had $57.3 million in its real estate loan portfolio as of Dec. 31, down 0.09% from year-end 2014.

Penoza adds that her credit union currently holds all 860 of its mortgages in-house, with plans underway to use a CUSO to begin selling into the secondary market in the next year or so. She says the experience gained with getting ready for TRID will helpalong the way, and that the TRID rule has been a net gain for her shop.

I don’t want anyone throwing eggs at me, Penoza says. I know there’s been a lot of anxiety over this, but it really did work out for us. My staff tells me they love the new process, the way it flows, and the forms.

Consumers also are OK with it all, according to at least one report. The Stratmor Group says although back-office fulfillment and post-closing costs have increased by an average of $209 per loan, borrowers have cited an increased level of satisfactionwith the new rule, according to a March 24 article in National Mortgage News.

Manion at APL is also a fan. The credit union is still working out some kinks in its loan origination system, but Manion thinks the new rule already adds valuable protection for consumers overall.

The forms are simpler and easier to understand, the lending manager says. And now the borrowers have three days to look at the disclosures before they close. That alone helps eliminate questions and concerns. And, really, changingsomething an hour or two prior to closing just isn’t a smart thing to do.

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