If you thought the U.S. Department of Housing and Urban Development (HUD)
caused chaos when it updated the Good Faith Estimate (GFE) and HUD-1
forms in 2010, just wait until August. That’s when the TILA-RESPA Integrated
Disclosure (TRID) forms — which essentially merge forms from the Truth in
Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA)
— hit the mortgage industry. If you think your technology vendor has you
covered and all you need to do is upgrade some software, it’s time to rethink
that notion.
TRID is much more than a simple form change. Instead, it is likely to mandate
changes in title, settlement and closing processes for originators and their
service providers. The Consumer Financial Protection Bureau (CFPB) has
repeatedly emphasized it will not delay the Aug. 1 deadline and will not offer
a grace period for enforcement. So, if your origination and closing processes
are not TRID-compliant by August, the CFPB could descend on you like a comet
falling from the sky. >>
The quality of your service providers
could prevent a disaster come August
Illustration by Dennis Wunsch
Chief technology officer
Commonwealth USA Settlements LLC
By Shanon M. Lake-Catello
