January 2016 - Out of the Woods

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10 | TH E M R EP O RT TAKE 5 success stories when lenders have been provided detailed training. M // When there are changes to the data that may affect RESPA tolerance thresholds, how does the system know and how are all parties notified to ensure compliance? ANDERSON // To have a viable compliance solution I think this is one of the main requirements. Some of the portals are only focus - ing on the final Closing Disclosure (CD), but as everyone knows the CFPB rule's intent is to ensure compliance, transparency, and accuracy from the beginning, with the issuance of the Loan Estimate (LE) all the way to closing. If you are implementing a system and process that does not continuously check changes to the data that may affect tolerance thresholds and also track the re-issuance of disclosures because of change of circumstance, then you really do not have a com - pliant system. M // What are DocMagic's plans over the next year to help its clients progress with TRID compliance? ANDERSON // Since DocMagic is a compliance company by nature, we will continue to make the system more intelligent to validate data and documents to ensure compli - ance. We have been tracking and participating with the MISMO Fee Terminology workgroup to ensure that the closing fee descriptions mean the same thing when applied to the CD as the title companies to ensure the right fees are applied to the right places on the form to ensure compliant calculations. We are also going to be directly reaching out to our title partners to create and schedule joint webinars on how to implement a compli - ant TRID solution. We are also expanding our system capabilities to include the ability for title agents to add their own documents and enhancing the system to support full e-closing of "all" the documents, including e-notary, to provide a complete paperless closing. So, 2016 will be a big year for expanding adoption and implemen - tation for us. M // The industry has heard a lot about how Collaborative Closing Portals will address TRID compli- ance. How do these solutions go about keeping all parties in compliance? ANDERSON // I've been told there are close to 30 collaboration closing solutions in the marketplace today. Depending upon who's offer- ing them and where they come from, (industry expertise/focus and background), they run the gamut to just keying data into a dumb screen "mock up" of the form to full, robust RESPA verification systems that rep and warrant compliance of the documents and calcs. The more fully developed solutions authenti- cate and enforce (based on sign-on) what rights, roles, and responsibili- ties they have in the transaction and will not produce a legal document until they know the data is correct, current and compliant. M // What key features and functionality do these portals need to provide? ANDERSON // The portal needs to be truly collaborative. This means it isn't just a simple send/receive but a secure (SOC) online environ- ment to authenticate parties' rights and roles to exchange any data and documents, (not just the LE and CD) with real-time updates. E-sign and e-delivery functionality built within the portal to provide e-consent, e-acknowledgement, e- docs, e-notary, and e-delivery to the borrower is big. The solution also needs to continuously run compli- ance checks in the background of the portal, and the vendor should rep and warrant compliance of the process, forms, and calculations to ensure comprehensive compliance. Lastly, the ability to demonstrate electronic evidence is crucial, which captures, tracks, and records (date and time stamp) an audit trail of all changes, re-disclosures, and final approval of documents. M // TRID has only been effective since October 3. Currently what level of adoption do you see happening among lenders and settlement providers with these collaborative closing solutions? ANDERSON // It will take some time, but the portal must integrate with both the lenders' LOS and the title system in order to seam- lessly share and exchange both data and documents. Keying in data at different times and wait- ing for approval is only going to slow the process. The system also must be intuitive, intelligent, and easy to use. For example, some systems just took the document form and pasted it up there for data input without putting any logic or intel - ligence around it. As most know, the closing disclosure form—like many of the closing documents—is not static but dynamic, so based on the state, loan product, and loan conditions, we only display and ask lenders to fill out what is relevant to reduce errors. And finally, tutorials need to aid both lenders and title agents on how to use the system. You hear the most "You hear the most success stories [with Collaborative Closing Portals] when lenders have been provided detailed training." Know Before You … Choose a TRID Tech Partner Titled "Know Before You Owe," the TILA RESPA Integrated Disclosure Rule (TRID) was created to ensure borrowers are fully apprised of what they are getting into by signing their mortgage documents. Lenders who are tasked with adhering to TRID need to be equally "in the know" when choosing a service provider to streamline the process. This month we sat down with Tim Anderson, DocMagic, Inc.'s Director of eServices, to get up to speed on where TRID compliance stands now, three months after its effective date.

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