The fabled TILA-RESPA Integrated Disclosures (TRID) rule that went into effect last October was designed to make the process of getting a mortgage easier and more transparent for consumers – to make the features, costs and risks of a mortgage simple and straightforward. Unfortunately, an online survey recently conducted by ALTA showed that the new mortgage disclosure rules are not having their intended effect.
TRID Title Insurance Premium Survey
The survey collected data on 2,000 current and prospective consumers’ experiences with the new mortgage disclosures. It included 14 questions to learn the respondents’ preferences for learning about title insurance. It showed actual, CFPB-compliant Closing Disclosures that showed title insurance premiums, informed them of the actual cost of title insurance afterward, and then recorded their reactions.
They weren’t good.
Most survey-takers found the rule “confusing and deceptive.” The most popular response after being shown the CFPB’s mortgage disclosures and then being presented with the actual cost of title insurance was: “I’m confused.”
TRID Disclosures: “I’m Confused”
After showing the CFPB’s disclosures and presented with the true cost of title insurance, the most popular response from consumers at 31 percent was “I’m confused.” But the most concerning response was that 10 percent of surveyed consumers felt that they were being deceived or taken advantage of because they weren’t told the true cost of title insurance on the disclosure. These numbers verify what many critics of TRID have said all along: the inaccurate disclosures of title premiums are confusing consumers and making them lose faith in the process – the exact opposite of what was intended by the CFPB.
Consumers Prioritize Information
When given the chance to share what information they did care about, consumers said that the most important things was a detailed breakdown of all the costs for a service and a way to easily compare the estimates versus final figures and disclosures versus actual costs.
Title Insurance and Closing Services from Lakeside Title
Lakeside Title Company is a title insurance company that works with builders, lenders, and realtors in Maryland, Washington D.C., Northern Virginia, and Southern Pennsylvania. We offer a full range of closing services and searches, including mechanic’s lien searches, surveys, and more. For more information, please visit our homepage.
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