Shanon M. Lake-Catello is chief technology officer of Commonwealth USA Settlements LLC (CWUSA),
a full-service title and settlement provider for mortgage lending companies and banks nationwide.
Lake-Catello joined the company at its inception in 2010, bringing with her 20 years of title and settlement experience. Previously, she worked at Lender’s Service Inc. and Mortgage Settlement Network LLC, where she had oversight of
marketing and public relations. Reach her at firstname.lastname@example.org or (888) 991-1519, ext. 3950.
As lenders and vendors scramble to install systems and processes that will
comply with the August TRID implementation deadline, it’s important to
remember that technology alone will not make the transition a smooth one.
And if your service providers aren’t up to snuff, you may be on the hook as
well. You should already know if your institution is ready, but how can you be
sure if your service providers are? What should lenders be looking for from
service partners before TRID becomes the law?
Although TRID is more of a process change than a forms change, implementation will definitely involve quite a few technology upgrades. It won’t just be
the technology generating new forms that makes a difference, however. TRID
will force lenders to change the way they collaborate with service providers
who handle the settlement process as well.
In essence, TRID will require originators and vendors to complete the
combined form almost simultaneously rather than doing their respective
parts in sequence, as in the past. Thus, it won’t just be the platform or system
you’re using that matters. The system your service providers are using also
To complicate matters, only a few established technologies will serve as
solid pipelines bridging title-production technology and loan origination
systems. If your service provider is not hooked up to one of those conduits,
you may have to make special arrangements for your software to “talk” to
theirs. It is almost impossible to fill out a form collaboratively if your system
can’t connect with your provider’s system.
You also want to make sure your provider’s production system is ready for
the change. Many of the largest and best-known title technology providers
are ready — or will be by August — but if you’re not familiar with the system
your service provider uses, find out as soon as possible. Numerous settlement
services companies still use proprietary or homegrown production systems,
which may not be compliant with TRID. Be ready to ask hard questions of
your vendors if this is the case.
One way or another, many of the changes required by the GFE/HUD-1 consolidation in 2010 fell to title and settlement services providers. This will not be
the case with TRID. It is quite possible that lenders and originators will need
to change the way they move loans from application through closing to be
compliant with the rule. No title or settlement services company can do that
Your service providers should be a problem-solving source for you at times
like these, not an obstacle. Be sure to ask yourself — and your vendors if you
don’t have the answers — the following questions over the next two month:
■ Do you alter the way you originate to accommodate your vendors’
systems and procedures, or do they adapt to yours?
■ Are your service providers fully aware of the day-to-day requirements
of TRID — for their business and yours?
■ Does TRID knowledge extend from owners and executives to managers
■ Are your service providers getting enough training on the issue?
The short timeframe before TRID implementation also will mean that
some businesses won’t be able to perform extensive testing on system and
process changes before August. Needless to say, this is not optimal. Be sure
your service providers have substantial and comprehensive contingency
plans and troubleshooting procedures in place for what will likely be a fairly
chaotic period after the changeover.
Finally, lenders and originators will likely have to make some changes to
their own mortgage origination and settlement procedures. TRID requires
several pieces of information that your vendors simply cannot supply for you.
Your partners may have ideas on how to manage these processes, however.
Ask them. The bottom line is that your service providers should be partners,
not obstacles, during this period.
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