Three Ways a Strong Doc Platform Keeps Compliance Costs Under Control
Despite the Senate taking an axe to parts of Dodd-Frank last month in a proposal that would impact small and mid-sized banks along with changes to the SAFE Act, TRID disclosures and PACE loans, lenders still struggle with the rapidly rising costs of compliance.
For many years, one of the primary benefits touted by advocates of electronic mortgage lending was the concept of moving to a paperless loan process. However, with the Consumer Financial Protection Bureau’s (CFPB) TILA/RESPA Integrated Disclosure (TRID) rules that went into effect in 2015, eliminating paper – and its respective costs – is still a challenge for lenders making the move to digital.
On December 6, 2017 the Consumer Financial Protection Bureau (CFPB) published an updated version of the “TILA-RESPA Integrated Disclosure Guide to the Loan Estimate and Closing Disclosure forms”. The new guide included updates and amendments, which the CFPB hoped would provide illustrations for how the final rule is issued in July 2017 should be implemented.
Denver, Colo. was invaded by leaders from the mortgage space, all eager to learn more about what’s to come in 2018 and get a firsthand look at the latest technology innovations aimed at simplifying and optimizing processes and improving the borrower experience. Along with a trade show floor full of new product and service offerings, MBA Annual 2017 offered attendees the opportunity to sit in on an array of sessions tackling key topics such as HMDA, digital mortgage and regulatory changes not to mention a motivating session on leadership led by five-time NFL MVP Peyton Manning.
Earlier this year, we wrote about the new Uniform Closing Dataset (UCD) delivery requirement coming from Fannie Mae and Freddie Mac, which changes the way lenders provide loan information to the nation’s largest investors. The requirement is set to go into effect this Monday, September 25.
Recently, the Consumer Financial Protection Bureau (CFPB) released a collection of much anticipated changes to its TILA/RESPA Integrated Disclosure (TRID) rule. Once the changes were made public, a number of publications shared the news, along with their take on the development. Given the length of the document, we wanted to digest it fully before offering our comments to the industry.
In a previous post, we addressed how CTOs in financial services have become entrenched in compliance concerns and discussed how dynamic doc solution providers can help lessen this burden. In this post, we’d like to dive a bit deeper into the topic to discuss how CTOs and doc prep providers can work together to give consumers a seamless mortgage lending experience.
In today’s mortgage business, Chief Technology Officers (CTOs) have their hands full. From the beginning, technologists working in the home finance industry had a tough job. First, they had to identify automation that would improve the lending process, get it implemented, and then get company personnel to adopt it.
Technology is extremely complex today and the compliance requirements are so high that more and more providers are offering pre-configured software to avoid customizing code. There are good reasons to avoid a custom implementation when possible, but there are also reasons that software providers must remain flexible if they hope to meet the changing needs of today’s mortgage lenders.
