[1]As the TILA-RESPA Integrated Disclosure [2] (TRID) rule came and went, mortgage applications experienced some drastic ups and downs in the week prior to regulation's implementation date and the week after.
Mortgage applications fell 27.6 percent from one week earlier, according to data from the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey [3]for the week ending October 9, 2015.
Last week, MBA reported [4] that mortgage applications experienced a dramatic increase in the week just before the TILA-RESPA Integrated Disclosed Rule (TRID) was put into effect on October 3rd.
As buyers and originators rushed to beat the TRID rule implementation and interest rates experienced renewed volatility, mortgage application increased 25.5 percent on a seasonally adjusted basis for the week ending October 2, 2015.
"The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change," said Lynn Fisher, MBA's VP of Research and Economics.
Since TRID went into effect, mortgage loan application volume has reversed directions and declined 27.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 27 percent.
"Application volume plummeted last week in the wake of the implementation of the new TILA-RESPA integrated disclosures, which caused lenders to significantly revamp their business processes, and as a result dramatically slowed the pace of activity," said Mike Fratantoni, MBA's chief economist. "The prior week's results evidently pulled forward much of the volume that would have more naturally taken place into this week."
MBA also found that the Refinance Index decreased 23 percent from last week. The seasonally adjusted Purchase Index declined 34 percent, and the unadjusted Purchase Index fell 34 percent.
"Purchase volume for the week was below last year's pace, the first year over year decrease since February 2015, while refinance volume dropped sharply even with little change in mortgage rates," Fratantoni said.
Click here [3] to view the full report.