The Problem That Many Lenders Have With TRID

eLynx has identified that many lenders will be relying at least in part on manually entered data to create the CFPB-mandated Closing Disclosure (CD) after its August 1, 2015 implementation date. Lenders are concerned that manual data reentry will be a major cause of disclosure mistakes when the federal TILA/RESPA Integrated Disclosures (TRID) rule takes effect. Here’s the proof:

eLynx conducted a survey among the hundreds of lenders and settlement professionals currently using its services. The results are alarming: Only 6 percent have a fully automated process for collecting property-related data from settlement service providers (SSPs). The rest will rely on manual data entry for at least some of their SSPs. Automating data entry typically requires a direct integration between the title production system (TPS) and the system creating the Closing Disclosure. Several vendors, including eLynx and its partners, either currently have or are planning integrations with the major title production systems. But most lenders work with many different SSPs and will not have an automated solution for every settlement services provider. These lenders must rely on manual data entry, a process prone to error and risk.

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eLynx has an alternative solution to the problem – an automated data extraction service. This service enables SSPs to upload property and fee information to eLynx in document form so eLynx can extract the data to be used in the Closing Disclosure. “eLynx’s data extraction service eliminates the need for lenders to reenter data from their settlement service providers’ documents. They can completely bypass the part of their workflow that presents the highest risk for error,” said eLynx President and CEO Sharon Matthews.

“If the settlement services provider can generate a Closing Disclosure in a PDF format, eLynx can extract the data and transfer it to the eLynx Electronic Closing Network, eCN,” she explained. “From there, the lender can combine it with loan-specific information from their loan origination system, compare it to previous disclosures and create the Closing Disclosure.”

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Matthews said that the data extraction service, which has been developed in part from the company’s acquisition of Medallion Analytics in 2014, is another example of how eLynx creates its best innovations by listening to its broad base of customers regarding the pressing problems they face.

“This solution provides lenders with a viable alternative that is readily available,” Matthews said. “All the settlement services provider has to do is create a compliant Closing Disclosure using their title production software and upload the file to Expedite ID. We’ll do the rest.” Matthews adds, “eLynx’s data extraction technology is one of the many Expedite ID capabilities that will help lenders ensure compliance with TRID, reduce costs associated with compliance and improve overall loan quality.”

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.