More help has arrived for mortgage bankers to address upcoming requirements for the integrated disclosures. Technology is the primary tool being used.
American Land Title Association
President Diane Evans testified Wednesday before the House Committee on Financial Services, according to a copy of her prepared statement.
Evans told lawmakers that the Consumer Financial Protection Bureau should make a public commitment to a hold harmless period of one year after the Aug. 1 implementation date for integrated disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act.
She explained that without the hold harmless period, businesses will likely
follow more stringent risk-management procedures — limiting access to credit and settlement services.
Evans also raised concern about how title charges that vary between the Loan Estimate and the Closing Disclosure will confuse borrowers. She noted that title insurance premiums are
the only cost disclosed at closing that the CFPB prevents consumers from receiving their actual charge. ALTA would like the industry to be allowed to disclose the actual title insurance premiums required in each state.
A quick reference compliance guide announced Thursday by LoanLogic is intended to help lenders better understand the new disclosure requirements.
Dubbed Are You TRID Ready?, the guide provides a detailed explanation of the Loan Estimate and Closing Disclosure along with line-by-line references about how to complete the form.
“Tracking versions of the new disclosures, as well as timing definitions, is a role for technology,” LoanLogic stated in the announcement. “Lenders can’t rely on humans to get this correct. Open infrastructure technology with active alerting and dynamic work flow driven by rules will become the standard.”
Registration has opened on Closing Insight for settlement agents, Black Knight Financial Services announced Thursday. The suite of online solutions is designed to help lenders comply with the integrated disclosure rule.
Black Knight said Closing Insight obtains, aggregates and validates fee quotes from multiple sources. The suite has a rules-based engine focused on data completeness and compliance validation.
“Our goal is to provide the industry with a secure, scalable, low-friction solution that enables both small and large players to achieve compliance and gain operating efficiencies that drive value for consumers,” Dan Sogorka, president of Black Knight-subsidiary RealEC Technologies, said in the announcement.
Independent Bank has signed on to use the Encompass mortgage management solution, Ellie said last week. The decision to utilize Encompass came as the lender was considering implementation of the new disclosures. Encompass addresses the disclosure concerns with integrated compliance features.
