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24 | Th e M Rep o RT Feature In TRID We Trust New Rule Could Restore Faith in Mortgage Industry, Increase Collaboration With Title professionals By Kevin Wall F rom pre-application to closing, TRID promises to upend the mortgage process as we know it. It will change the pace of document preparation and delivery, and it has the potential to redefine the rush-to-close tradition on the whole. But while TRID is clearly a huge undertaking for all parties involved, it also marks the beginning of a much-needed change in the industry—one that consumers and homebuyers have been yearning for for years. The millennial generation in particular should benefit from TRID's changes, as these homebuyers are often discour- aged by the daunting mortgage processes and the intimidating stacks of 20th-century paper that it produces. These buyers are so accustomed to information-rich, mobile-friendly, easy user experi- ences in their daily lives that they've come to expect it with all business transactions, too. TRID presents an opportunity to provide just that. Once enact- ed, TRID will help simplify the unnecessarily complex mortgage process, while also reestablishing trust between consumers and the entire real estate industry through increased transparency and com- munication. Put simply, TRID is our oppor- tunity to start "walking the walk" when it comes to streamlining the path to homeownership. Changing the Fundamentals I n addition to consolidating several documents into two consumer-friendly formats—the new Loan Estimate and Closing Disclosure—TRID also calls for a shift in responsibility for the preparation and delivery of these forms. Instead of falling on the shoulders of the title and settle- ment provider, the burden will now be on the mortgage lender to ensure the content of these forms is complete and accurate when it reaches consumers' hands, and all within a very short window. The settlement agent will be respon- sible for providing the seller's closing disclosure. This stands to fundamentally change the pace of work on the mortgage closing process. Every loan closing will now require a front-loaded effort to keep it on track, or else risk violating the strict three-day delivery rule. For example, this might require title professionals to collect and submit fees an unheard-of 10 days before closing. For most lenders, this will require significant changes to their processes and workflow, as well as upgrades to technology systems. Unfortunately, many do not have the depth of resources to focus on adjusting their internal systems and processes by August 1, nor can they ensure any business partners, such as mortgage brokers, are up to speed on the go-forward plan. The fact of the matter is, while TRID might look like a huge inconvenience on the surface, it's also an opportunity for lenders to simplify operations and strengthen relationships with key service providers. For all parties involved, those who embrace these opportunities can turn TRID to their competitive advantage in the marketplace. Collaboration Is the Only Way S peaking from a service- provider perspective, preparing for TRID needs to be an exercise in collaboration. Compliance is a shared effort. We must demonstrate leadership to help our lender customers prepare for TRID by equipping them with the knowledge to address workflow challenges, supporting them with multiple integration and technology solutions, and providing them educational and training opportunities to explain the industry's view of the upcoming changes. Service providers must dedicate tremendous resources to train their internal teams so they can, in turn, share their knowledge with their lender customers. A proactive approach is vital to this process. Providers must reach out to lenders and start conversations about technology and operational needs that are in the pipeline. At First American Mortgage Solutions, we've built our own software features to produce a closing disclosure as backup for lenders lacking a fully automated solution by August 1. Whether or not intentionally, the CFPB has set the stage for our industry to move closer to a fully electronic mortgage, which would better align with where our society and technology advances have already taken us. This won't happen overnight, but each step we take to move in that direction will only help improve the consumer experience. As an industry, we must be able to reflect our target customers' preferences, including the next generation of homebuyers and mortgage professionals. Millennials' comfort with technology makes for a more informed consumer group and a more flexible workforce. Unquestionably, the impact of TRID will be both disruptive and reconstructive, toppling some sacred cows and inviting all of us to rethink the way we've always done things. What's important to keep in mind is that by increasing transparency and communication, we're build- ing accountability and trust with consumers. That's a really good and necessary step in restoring both the housing market and the American dream of homeownership. The millennial generation in particular should benefit from TRID's changes, as these homebuyers are often discouraged by the daunting mortgage processes and the intimidating stacks of 20th-century paper that it produces. Kevin Wall is president of First American Mortgage Solutions, a primary provider of collaborative and customizable data, analytic, valua- tion, title, settlement, risk mitigation, and quality control solutions for loan origination and servicing.