Focus: Legislation and Compliance
Every month, Scotsman Guide zooms in on a particular industry
topic that is essential to the collective knowledge of residential
mortgage professionals. This month’s focus is on legislation and
compliance. Read past Scotsman Guide articles online for insight into
various strategies related to legislation and compliance.
Director of implementation management
By Janice Minchenberg
Illustration by Dennis Wunsch
You have to get the timing just right on Closing Disclosures
Imagine a world where mortgage originators are constantly issuing second or third
Closing Disclosures (CDs) to borrowers because of fee adjustments, with each fee change
triggering TRID rules requiring a new CD to be issued. Each reissued CD pushes back
closings to accommodate reviews by underwriters, closing agents or borrowers’ attorneys.
Sound familiar? You are not alone. This nightmare scenario is a reality for many mortgage
companies across the nation.
Flawed CDs and missed opportunities for benefiting from changes of circumstances
are the main culprits for closing delays and inaccurate fees. Are loan processors being too
proactive when they try to avoid delays and work around CD delivery constraints by issuing
initial CDs too soon, thus costing their companies even higher costs and cures? The answer
is a resounding “Yes!” >>
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Articles and News
“Nightmare Scenario for Compliance,”
Janice Minchenberg, November 2016
Search our archives, which go back to 2003, at sctsm.in/RESsearch
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