Dec.22, 2015 The TRID deadline has come and went and we are all still here. We saw a mad dash on the part of mortgage lenders and technology vendors alike to comply with this new rule. They all danced around, did a little shuffle and by now everyone has found a dance partner.
It all reminded me of a prom. The technology vendors did there best to comply and stand out so they’d be picked to escort the most lenders to the dance. And in fact, lenders did make their choices.
For example we heard that PHH Mortgage (PHH), one of the largest providers of residential mortgages in the United States, signed a multi-year license agreement to use DocMagic’s expansive set of products to help ensure compliance with the TILA-RESPA Integrated Disclosure (TRID) rule.
"We have worked closely with DocMagic for the last year to thoroughly evaluate, test and integrate their technology and compliance solutions, and we will use various components to ensure we are TRID compliant,” said Eric Sadow, chief compliance and fair lending officer. “We are confident that our use of the DocMagic technology and compliance solutions will meet our needs and the needs of our clients, regulators, investors, partners and borrowers."
Did you get that? PHH worked on TRID for a year. Why? "Anyone working on TRID implementation will tell you that there have been many unexpected challenges,” said Gregory E. Teal, president and chief executive officer of Ernst Publishing. “We wanted to go live as early as possible so lenders can begin using the tool and testing their processes ahead of the CFPB’s deadline. I’m very proud of our team for getting everything together so quickly. The system is available now for lenders to use."
Ernst programs process an average of 150 million real estate transactions every year, industry-wide. Since the company was founded 26 years ago, Ernst has processed over 1 billion transactions. The firm estimates that its patented technology is in use for 90% of the nation’s new loan originations and refinance transactions.
Smart technology vendors not only helped their clients comply, but they also offered training. For example, Ellie Mae launched its Resource Center online for lenders to take advantage of the complete library of help resources.
“Our goal is to help mortgage lenders of all sizes feel prepared and confident for the RESPA-TILA Integrated Mortgage Disclosure Rule on October 3rd and beyond,” said Jonathan Corr, president and CEO of Ellie Mae. “We are able to offer comprehensive resources and training to help our customers prepare for this major change and we’re adding new resources to respond to feedback and concerns.”
“TRID rules are complex and affect all of the financial loan institutions’ – both originators and servicers – federal and state compliance tests; RxOffice allows users to ensure their processes are compliant,” added Andrew F. Campbell, counsel with Ober|Kaler. “Once the loans are run through the system, lenders or the servicers can immediately know if they are compliant or not and they can also know what they need to do to fix it so that they can be compliant.”
IndiSoft partnered with Ober|Kaler earlier this year to provide guidance and assistance to IndiSoft in enhancing two of its compliance modules, RxOffice Vendor Management Portal and RxOffice Compliance Portal, on all the current regulatory compliances.
“The industry is in a constant flux when it comes to regulations,” said Sanjeev Dahiwadkar, IndiSoft CEO and president. “Our platform and specifically our compliance modules make it easier for users and the executive management to keep up with the current compliance mix of its portfolio and help them in making right decisions. This gives them peace of mind and saves them the time, money and effort of trying to decipher complex regulations on their own.”
What’s my point in rehashing all this? My point is that this is a testament to this industry’s ability to tackle tough challenges. Now that the challenge of TRID is over I challenge lenders and vendors alike to do even more. Let’s move beyond TRID and really think about how we can improve the whole mortgage process. The CFPB hasn’t told us to do this, but why wait for them?