IRVINE, CA—In November 2013, the Consumer Financial Protection Bureau integrated the Real Estate Settlement Procedures Act and Truth in Lending Act disclosures and regulations, making it a requirement that any transaction involving a mortgage use new CFPB disclosure forms. The new TRID rules and forms took effect on October 3 of this year. Once the industry bakes the new forms required by fully into their processes, it will see problems and even deal killers dealt with up front instead of waiting until the last minute, RealtyTrac's VP Daren Blomquist tells GlobeSt.com. We spoke exclusively with Blomquist about the new TRID rules and forms and how he sees them impacting the real estate market.
GlobeSt.com: What do you see as the immediate and long-term impacts of TRID on the real estate market?
Blomquist: The immediate impact will likely be a slowdown in home sales in the fourth quarter, but over the next six months I would suspect that most of the major bugs will get worked out, and it will not have a lasting impact on the real estate market.
GlobeSt.com: What are the pros and cons to the new disclosure rules from a real estate industry perspective?
Blomquist: The primary pro is that at the end of the day, these forms are better for the consumer, and that is good for the industry. Once the industry bakes these new forms fully into their processes, they will see potential speedbumps and even deal killers dealt with up front instead of waiting until the last minute. The big drawback for real estate agents is that they are somewhat locked out of important information to which they are accustomed to having access. This could further reduce the role of the real estate agent in a transaction.
GlobeSt.com: Where do you see the industry heading in terms of regulation?
Blomquist: I think these TRID rules represent the last major push for more regulation in the industry, at least for a while. The pendulum is swinging back to less regulation and easier access to homeownership, which typically comes with looser regulation.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
