Compliance Updates

November: Weekly Compliance Updates

TRID Hot Topic Series: Use of Vendors

November 26, 2014

From the perspective of a vendor, IDS recognizes the importance of vendors to implementation of the TILA-RESPA Integrated Disclosures. It cannot be overstated just how important vendors, in general, will be to the TRID puzzle. Vendors can help manage many aspects of the rule, including: data collection, data and file transfer, document generation, fulfillment and eSign, data storage, timing requirement audits and alerts, and more. In the loan origination process, there are many vendors that may play a part in producing and completing the LE & CD, e.g., brokers, LOS providers, document preparation providers, compliance review providers, and settlement service providers. Given the importance of vendors in assisting with TRID, there is no doubt that creditors will rely on the expertise of vendors to do a particular function; however, the rule gives creditors good reason to pay close attention to their vendor management, especially in the case of brokers and settlement service providers, as seen from the citations to the rule in the next two paragraphs.

(Read More)

TRID Hot Topic Series: Correcting CDs and Refunding Money Post-Closing

November 21, 2014

TRID has several required provisions for “curing” inaccuracies or changes due to events occurring after consummation in the Closing Disclosure given to the Borrower and/or Seller.

§ 1026.19(f)(2)(iii), has answers to changes due to events occurring after consummation that affect the amount paid by the borrower. The rule states that if an event in connection with the settlement of the transaction occurs within the first 30 days that makes the amount actually paid by the consumer inaccurate in comparison to the CD, then the creditor must place in the mail corrected disclosures within 30 days of knowing that the inaccuracy occurred (paraphrased). § 1026.19(f)(4)(i) & (ii) has a similar requirement for when the CD specific to when the seller becomes inaccurate with regards to amounts actually paid by the seller. This is what IDS Compliance calls the “30 day + 30 day” correction rule because there are 30 days to find out about it and 30 days to correct it.

(Read More)

IDS TRID Webinar Series

November 14, 2014

IDS Compliance will present a series of webinars related to the TILA-RESPA Integrated Disclosure rule. The first webinar, scheduled for Tuesday, November 18, 2014, will be an overview of the IDS Implementation Plan and a preview of some of the changes coming the idsDoc System. The second webinar, scheduled for Tuesday, March 17, 2015, will address more of the idsDoc System changes in greater detail. The third webinar, scheduled for Tuesday, June 30, 2015, will cover best practices for testing the TRID Forms and integration with other systems.

IDS Customers who are unable to attend any of the scheduled sessions for any reason will be able to view a recorded version of the webinars the next day on the Compliance Resources page.

TRID Hot Topic Series: New Increased Record Retention Requirements

November 7, 2014

Most lenders already recognize the importance of managing record retention policies; however, little, yet important, things like making sure that IT has the infrastructure to manage longer retention periods will be an important part of the TRID implementation process.

Section 1026.25(c) states regarding records related to certain requirements for mortgage loans:

A creditor shall retain evidence of compliance with the requirements of [the Loan Estimate (and the CD when the loan does not consummate)] for three years after the later of the date of consummation, the date disclosures are required to be made, or the date the action is required to be taken.

(Read More)