TRID has been delayed by CFPB. As a lender, what can you do to maximize the extra 60 days? Here are 3 basic steps to get started.
CFPB’s original release date for TRID was August 1, but after what is being called an “administrative error” the date has been pushed back to October 1. Regardless of what may have actually caused the delay (incompetence, or the CFPB’s desire for more time to “test” their business processes), TRID will be postponed 60 days.
TRID is a conglomerate of new rules that merges the forms required under TILA and RESPA. New regulations exert pressure on lenders to provide accurate information regarding the new Loan Estimate (LE) and Closing Disclosure (CD) documents. Compliance is important. Now that lenders have an extra month to prepare, are you making the most of your time? Here are 3 ways to ensure your extra time is well spent.
- Educate your staff to be well-versed in new TRID rules. Use this extra time to make sure everyone from operations to finance is playing their part to be TRID compliant when October 1st rolls around. CFPB continues to release new updates and amendments to rules. Incorporate research and checking out TRID news into employees work schedules. This includes intricate new policies regarding the lender-realtor relationship, which will be covered in more detail in a later news update. So, stayed tuned.
- Update and test new Loan Origination System (LOS). Make sure that the new TRID rules are integrated into your LOS software. Allow ample time for testing your updated LOS and create procedures to troubleshoot new problems. Testing new LOS is particularly important to ensure seamless integration into your company’s processes. Upholding compliance during all the TRID changes will be difficult. Use this extra time to adjust to the workflow required for compliance.
- Communicate and be transparent with all departments. Negotiations now must be locked down three days prior to the CD. New regulations require an extra focus on QC and compliance under such time crunches. This may mean using fewer title and settlement agents, opting for only those that possess a genuine knowledge new procedures. Make sure you talk to your vendors and Appraisal Management Companies (AMC) regarding new timelines or checklists you may have. Be sure that your AMC of choice is adopting any updates or changes in your specific QC Checklists. Technology integration could be a life saver among the new changes, and communicating with outside vendors and third parties will pay off.
Making sure you are TRID ready, will help assure that your consumers do not experience any delays, allowing you to stay cool during the TRID fervor October 1st. Keep in mind that although the delay may feel like a much-needed respite, 60 days will fly by, plan accordingly.