Implementing Ironclad CFPF Compliance

Next year will be a big year for the mortgage industry. With the new CFPB RESPA-TILA Integrated Disclosures Rule set to hit in August, many will be scrambing to maintain compliance. However, while some continue to craft their compliance approach, one LOS is atually already implementing to its lender clients right now. Here’s the scoop:

Associated Software Consultants, Inc., (ASC) developer of the PowerLender Loan Origination System has begun the implementation process of their Loan Estimate and Closing Disclosure documents solution for PowerLender users. Introduced by the Consumer Financial Protection Bureau (CFPB) to replace the Truth-in-Lending disclosures, the Good Faith Estimate and the HUD-1 settlement for most loans, the Loan Estimate and Closing Disclosures will be mandatory for lenders beginning August 1, 2015.

PowerLender’s solution allows lenders to dynamically generate the Loan Estimate and Closing Disclosures from within PowerLender rather than employing a document preparation service. Current PowerLender users have begun undergoing evaluations of their systems readying them for delivery, testing and acceptance of PowerLender Release 3.2, due for delivery in November. In addition, ASC has created a Setting up the CFPB Integrated Disclosures manual to help outline these necessary steps for implementation.

Due to the complexity of the new disclosures, lenders are faced with the possibility of maintaining thousands boilerplate documents in order to comply. However, PowerLender’s dynamic document solution saves users the expense and the workload associated with the few third-party solutions now being offered.

PowerLender’s use of an XML map to generate the disclosures eliminates the need to maintain boilerplates and readies lenders for future delivery of Uniform Closing Dataset to the GSEs. The UCD is not yet required, but most agree it will likely be one soon.

“We began preparing for the integrated disclosure transition when rule was first published in 2012,” said John Liston, Director of PowerLender Development, “that our solution is one of the first to market wasn’t our goal, it was allowing clients to plan early and use their own resources to accomplish the work, so they can be ready to use the CFPB integrated disclosures ahead of the August 2015 deadline at a minimal cost. And by providing a solution to a future requirement such as the UCD delivery, it adds tremendous value for our clients.”