MANY CLOSING AGENTS ARE UNAWARE OF TRID’S KEY CHANGES The new integrated disclosure rule is set to take effect August 1 and is something the mortgage industry has been warned about again and again. However, while many are aware of the rule, they are unaware of one of its key changes, according to a recent poll of 1,743 settlement agents nationwide.
36%
Only of closing agents are familiar with the new closing disclosure form
92%
of the respondents are familiar with the new rules
33%
of those surveyed had been contacted by their lender clients to review the new closing form
61%
of closing agents said they had taken steps to prepare for TRID
“We received a lot of feedback from clients about what to change and what to keep” Gavin Ales, chief compliance officer at DocMagic software. “We received a lot of feedback from clients about what to change and what to keep,” Ales added. DocMagic announced in February that its entire solution set now adheres to version 3.3 of the Mortgage Industry Standards Maintenance Organization reference model. MISMO establishes a common dataset that is essentially a prerequisite for lenders to use the CFPB’s new integrated disclosures and share the information about the disclosures with their industry partners. Ales said the new TRID rule places 100% of the responsibility on lenders and once it is in effect, lenders will need to automatically and seamlessly exchange the data from this
disclosure with its settlement agents and other partners, which is why DocMagic is launching a centralized platform between creditor’s and closing agent’s systems. The secure portal will allow creditors, closing agents and consumers to access, edit, approve and validate data electronically, even supplying a log of events and actions like compliance audits and approvals. Three-day closings Gone are the days of making last minute changes to loans, which is something that may be the most difficult thing for real estate and mortgage professionals to swallow. According to Peter Norden, CEO of HomeBridge Financial Services,
40%
Less than of the respondents thought the new closing form was a positive Survey conducted by mortgage data firm Secure Settlements Inc.
the industry isn’t use to having full disclosures wrapped up within three days of closing. “It’s no longer where you can change a closing number or a settlement number the day before the loan closes,” Norden added. “That is a major game changer for every realtor, every mortgage broker, and every closer.” Also, mortgage brokers and originators can’t just move loans from one lender to another; something Norden said is a pretty common practice. “They would have to start from scratch.” The form is typically prepared by an attorney, settlement or title professional in collaboration with a mortgage lender. Accuracy and completeness are critical as failure to properly prepare the forms will result in delays to a closing of a loan.
www.mpamag.com
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