A Unique Approach To TRID Compliance

To help mortgage lenders comply with the August 1st implementation of the TILA RESPA Integrated Disclosure (TRID), Motivity Solutions today announced the availability of a TRID Readiness Module for Movation, their flagship mortgage business intelligence (MBI) platform. The module combines Movation’s MBI engine with new TRID-specific key performance indicators (KPIs) and visualizers to support a broad range of functions to help lenders ensure they remain compliant with the new disclosure requirements. Here’s how it works:

Movation’s embedded analytics are tied directly to clients’ business processes to reveal metrics from a firm’s inner workings in real time. Movation’s TRID Readiness module takes the unique approach of working backward from the projected closing date to ensure that key milestones upstream from the closing are completed in a timely fashion, setting the stage for compliant disclosures, which must be received by the borrower a minimum of three days prior to closing. Motivity CEO Tyler Sherman discussed this approach on a recent broadcast of Lykken on Lending.

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“Most lenders have approached this from a systems perspective,” said Sherman, “making sure that their loan origination system (LOS) providers are going to be ready and if they are, they think all of their problems are solved. But what they’re missing is the process. Just because you have the systems in place, it doesn’t mean your people and processes are automatically going to fall into place. It becomes a matter of training, monitoring, and managing people. So systems are step one, but it really takes breaking down operational processes and having a system in place that tracks and monitors that for lenders: not just the major milestones but the sub-milestones as well.”

Sherman also pointed out what he sees as a silver lining. “What TRID is forcing you to do is to become more efficient, and this is actually good for lenders,” said Sherman. “Everyone knows that you should look at your process and define when key events should happen, and then make your process match those key dates. And the only way to do that is to measure and monitor, in our opinion.” In addition to measuring and monitoring, Movation’s TRID module also features proactive email notifications, which spotlight loans that get dangerously close to any compliance deadlines.

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Like all of their prebuilt solutions, Motivity is making the TRID Readiness module available to all Movation clients at no charge. Nearly half of their clients are already using the module to prepare for the August 1st compliance deadline.

“You’re a procrastinator, or you’re a planner,” said Sherman, explaining the two types of attitudes he sees among lenders when it comes to preparing for TRID. “If you procrastinate, and wait until the last minute to prepare, whatever process changes you make may not be sustainable, because they will not be ingrained in muscle memory. We advocate a sustained, proactive approach starting now, so you get a little bit better every day. So it’s not like a crash diet, it’s more like a lasting lifestyle change.”

About The Author

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Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.