Docutech Insights

HMDA is the Next Big Regulatory Wave Bearing Down on Lenders

Posted by Fred Gooch on Nov 22, 2016 9:00:00 AM

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Congratulations! You’ve survived TRID. You’ve adjusted to the Qualified Mortgage standards. All of your loan officers have been licensed in compliance with the NMLS standard.

 

But don’t relax now. The CFPB’s next wave-the Home Mortgage Disclosure Act (HMDA) – is bearing down. While the revisions to HMDA will be less intrusive than the recent TRID changes, this is still a major revision to a law that has not changed in more than a decade. The good news is that the standards do not go into effect until January 1, 2018. This gives lenders and their technology partners a little over a year to prepare.

 

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Topics: Compliance

2016 MBA Annual Convention Recap

Posted by Docutech on Nov 17, 2016 10:17:57 AM

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It’s that time of the year again! No, not Thanksgiving or Christmas, I’m referring to the MBA Annual Convention. Just a few short weeks ago, the best and brightest minds in the mortgage industry headed to the industry’s most important event of the year with the goal of absorbing as much information as possible from the various keynote speakers, sessions and other attendees moving about the convention center.

 

The 2016 MBA Annual Convention took place in windy Boston, Mass. where close to 200 of the mortgage industry’s leading companies showcased their latest and greatest innovations for hundreds of attendees, including a surprise appearance from actor Kevin Costner. In years past, technology has taken center stage at MBA and this year continued along that same theme.

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Providing a Comment Letter to the CFPB – Docutech’s Take on Current Rules

Posted by Fred Gooch on Nov 3, 2016 9:00:00 AM

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As the Consumer Financial Protection Bureau (CFPB) works to refine the rules it has established for our industry, we are called upon to provide comments to help the Bureau work through that process, and having lived through the earlier iterations of the CFPB’s rules, it is in our best interest to do so.

 

Most recently the CFPB asked for comments on its TRID proposed changes, and we felt it was important to provide a comment letter because we have witnessed firsthand the struggles our clients have had adjusting to the TRID rules. It has become clear that the current rule still has much ambiguity that has caused some confusion in our industry. Over the past year, we have worked very closely with LOS providers and our clients’ internal counsel to provide automation that allowed them to operate according to their own interpretations of the rule, which varied widely.

 

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Topics: Compliance

Beyond TRID – Getting Ahead of 2017’s Other Compliance Changes

Posted by Fred Gooch on Oct 27, 2016 9:00:00 AM

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While the proposed changes to TRID are certainly generating a lot of attention from lenders planning their 2017 compliance priorities, there are several other developments lenders should keep an eye on. These other regulatory issues affect not only the documents used in applications and closings, but also in reporting the annual loan data required by the Home Mortgage Disclosure Act (HMDA).

 

By preparing now, lenders and their technology partners can ensure that there are no obstacles to smoothly rolling out the new requirements.

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Topics: Compliance

TRID 2.0 – Clearing the Clouds of Uncertainty

Posted by Fred Gooch on Oct 11, 2016 11:19:54 AM

TRID 2.0 – Clearing the Clouds of Uncertainty

 

After nearly nine months of watching lenders struggle to fully implement the TILA-RESPA Integrated Disclosures (TRID) regulations that went live in late 2015, the Consumer Financial Protection Bureau (CFPB) released a series of proposed amendments. While there are no large individual changes, depending on a business’s practices, there are several small tweaks that could greatly impact the lender’s processes and procedures.

 

Understanding what is – and what is not – in the proposed changes will help lenders prepare for the next phase of TRID.

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Topics: Compliance

Where is Your eClosing Platform?

Posted by Harry Gardner on Oct 6, 2016 9:00:00 AM

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The mortgage industry continues to progress slowly toward the Holy Grail of a completely paperless process. As different technology providers enter the eMortgage space, a variety of partnership arrangements have evolved in order to piece together the various components needed for a fully electronic mortgage solution. Let’s explore those components, the different ways they can be assembled, and the possible advantages and downsides.

 

First, you need the documents themselves, of course. Mortgage disclosure and closing documents are typically generated either by the Loan Origination System (LOS) software, or by a third-party doc provider like Docutech. LOS-generated documents typically don’t cost extra for the lender, but may involve tradeoffs in terms of compliance quality, custom doc management, and responsiveness – and the LOS vendor may not rep and warrant their legal compliance the way a doc provider would.

 

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Topics: Technology

Does Your Mortgage Loan Doc Prep Solution Support Your Mortgage Process Improvement Goals?

Posted by Tony Inskeep on Oct 4, 2016 9:00:00 AM

Does Your Mortgage Loan Doc Prep Solution Support Your Mortgage Process Improvement Goals?

Based on today’s heavily regulated mortgage industry, financial institutions are re-evaluating their key goals and strategies to ensure they are not only meeting the latest compliance guidelines, but also doing so in the most cost effective way possible. While each institution is unique and shares different goals, the overarching theme for mortgage improvement across the industry points to increased efficiency and improving customer experience as the leading goals institutions are working toward.

 

For the mortgage industry, increasing efficiency points to a variety of areas within the institution, most importantly the overall loan process. In 2016, it is more expensive than ever before to manage the full lifecycle of a loan due in large part to changing regulations. In Mortgage Daily, the Stratmor Group reported the cost per loan was up 150% for retail lending, 166% on consumer-direct originations, 202% for broker lending and 82% on correspondent lending. The goal is simple: streamline the loan process to decrease the time and money needed to manage today’s mortgage procedures. But how?

 

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Topics: Technology

Preparing for Electronic Mortgage Lending

Posted by Harry Gardner on Sep 20, 2016 9:00:00 AM

Preparing for Electronic Mortgage Lending 

Having been in the business of helping lenders on the path to paperless for a good portion of our 25 years of service, we have seen many management teams approach eMortgage. Because this territory is so new for many, some companies stumble or hold back when they are on the very cusp of updating their institutions for the future. Fortunately, today there are many great resources available for the lender who wants to prepare for and then enter the world of electronic mortgage lending.

 

Resources to help

Almost every lender knows of or has at least heard about the many benefits of going paperless. They understand the time and cost savings, the improvements to process flow and the compliance benefits. But too often they just don’t know enough to make the decision to move forward and they stall.

 

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Topics: Technology

What Happens when you Drive Loan Processes with Data

Posted by Justin Summers on Sep 13, 2016 9:00:00 AM

What Happens when you Drive Loan Processes with Data

The mortgage industry is a document-centric business; you can’t get around it. If they don’t have the right documents, financial institutions can’t sell loans into the secondary market. This is an exciting time, because that no longer means that documents have to be printed on paper. So in working toward that new electronic workflow, business should be no longer driven by the documents themselves, but rather the data contained in them.

 

Getting to data-driven documents

Initially, lenders created digital versions of the original paper documents lenders as they moved to adopt electronic documents. This was a great first step, but forced consumers to deal with static forms that are difficult to modify and caused time delays waiting on changes to be enacted. Data-driven documents, have dynamic data points that hold the required data for each individual loan.

 

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Topics: Technology

How to Ensure a Solid eSignature Experience

Posted by Harry Gardner on Aug 30, 2016 9:00:00 AM

How to Ensure a Solid eSignature Experience

For most industries in which signing on the dotted line concludes the transaction, putting a solid eSignature experience in place is pretty straightforward. Many companies simply push a signature pad across the desk instead of a paper document. Things aren’t quite that simple in the mortgage business. Here, we ask borrowers to sign many documents throughout the entire mortgage process. Some of the docs must be executed early in the process, others at least three days prior to close and then even more at the closing table. Establishing a consistent, easy-to-use, seamless eSigning experience for the borrower across the entire mortgage origination timeline has been problematic in the past. Not anymore.

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Topics: Customer Service