Need a Path to TRID Compliance? Simplify Your Closings

How are you going to comply? Get ready for TRID.

Time is almost up. Are you worried about compliance with the new TRID (TILA-RESPA Integrated Disclosure) forms? You’re in need of a smooth transition past October 3, 2015.

TRID is here whether or not you are ready to comply. If you’re concerned that the new forms are going to affect the way in which you do business, then it’s important that you work with a title company prepared to implement the new closing procedure.

Who and what is TRID Compliance going to affect most?

The Pace of Business for Closing Agents and Lenders

One of the biggest challenges with TRID is that it changes the pace of business for closing agents and lenders. This is because with the three day “Know Before You Owe” rule, it is required that home buyers receive the loan estimate documents in a timely manner. Not only this, but it changes the very way in which a closing now operates with completely new forms that could create setbacks for some.

Deadlines for Lenders and Agents to Deliver Forms

The new regulations set in place by the CFPB outline that the Loan Estimate must be sent to the homebuyer no later than three business days after the initial application and no later than seven business days (a week) before consummation for review. These rules were meant to protect the consumer from any last minute changes in the loan value by offering a clear estimate of the costs upfront.

How Lenders Respond to Loan Changes or Requests

A major issue for lenders is the way in which they are now required to make adjustments to the original mortgage loan estimate and still continue to comply. A hole in TRID can be found in making any modifications to the loan estimate per the homebuyer’s request after the Closing Disclosure has already been written.

Some call this the TRID “black hole”, why, because there is no real way to comply once modifications are made, lenders must eat the additional costs when changes to the closing date are requested under specific circumstances when deadlines are near. This is because, given the time the lender is required to hand over the Loan Estimate (three days after the application but no later than seven days before consummation) and supply the Closing Disclosure (four days before consummation), it would be impossible for the lender to comply once changes are requested.

Uncertainty with New Forms and Systems

What’s the biggest issue when it comes to TRID? The uncertainty of how the forms will work once set in place and how this will affect the pace of everyday business are just a couple. Why go into such a big change in your business process with uncertainty? You need a better way, so simplify the process with a title company that’s ready to comply.

Some companies have already integrated the new TRID forms into their system to test the process before the deadline (Oct. 3) rolls around. This is an easy way to avoid the possibility that the new regulations could catch them by surprise.

Digital closing solutions increase the pace to match the recent standards set by the CFPB. For an easier path to TRID compliance, simplify your closings by taking advantage of latest technology, a team of legal experts, and excellence in customer service.

Work with Bay National Title Company for a better closing experience.

SOURCES:

New TILA-RESPA Disclosure Rules