Applications for new mortgages plummeted 27.6 percent in the week of October 3-9, immediately after the new TILA-RESPA integrated disclosures took effect, according to weekly figures released by the Mortgage Bankers Association today. Refinancing applications dropped by 23 percent.
The drop followed a significant spike of 25.5 percent the week before as lenders moved to process applications before the TRID deadline. TRID took effect for mortgages whose applications were received starting Oct. 3. TRID implementation “caused lenders to significantly revamp their business processes, and as a result dramatically slowed the pace of activity,” said MBA Chief Economist Mike Fratantoni. “The prior week’s results evidently pulled forward much of the volume that would have more naturally taken place into this week.”