Around 78 million people in the US are enrolled in some sort of school. Ranging from nursery school to college, this statistic is about 26% of the US population. In 2012, the average salary of full-time employees with a bachelor’s degree was $83k compared to only $41k of the workforce with a high school diploma.
Why is this relevant? Because a recent study showed that the cost of correcting mistakes on closed loans is increasing the cost of origination up by $28 per loan. When you break up the study, you’ll find that 17% of the loans that were analyzed failed for TILA problems and 6% for not meeting RESPA requirements. For the 6%, the average cost for reimbursement was $328 while 2% of loans that had unfixed RESPA problems was $740.
With the new upcoming TRID guidelines, penalties will range from $5,000 a day to $1 million a day for known violations.
These penalties far outweigh the costs that come from reassurance in knowing that you’re abiding by the new guidelines.