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Speed Up Closings In A Post-TRID World

Capsilon has released a free white paper, “The New Paradigm for Mortgage Loan Closing,” which discusses the effect that TRID has had on the mortgage closing process and provides advice to lenders on how they can speed time-to-close, eliminate errors, and contain costs under TRID by leveraging the right technology. Here are some highlights:

Since the TRID rule took effect on October 3, 2015, lenders have experienced lengthening time-to-close, increased labor costs, and difficulty collaborating effectively with settlement partners. Plus, a high percentage of loans contain TRID violations, which can lead to heavy fines and reluctance on the part of investors.

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“The New Paradigm for Mortgage Loan Closing” highlights how technology can automate key steps in the closing workflow and give lenders control over the new closing process. With the right technology solution, lenders are able to securely collaborate with settlement partners to validate and finalize fees, automatically perform TRID tolerance checks, and speed the process of assembling and distributing final closing packages for electronic signatures. By leveraging automation, lenders are able to reduce labor costs, eliminate errors, and close compliant loans faster.

Click here to download a complimentary copy of “The New Paradigm for Mortgage Loan Closing”.

Capsilon provides cloud-based document and data management solutions that enable mortgage lenders, investors and servicers to increase productivity and lower costs, while ensuring compliance. The company’s flagship product, Capsilon DocVelocity®, is a document imaging and data capture platform built specifically to address the needs of large mortgage companies. Headquartered in San Francisco, Capsilon serves many of the mortgage industry’s most innovative companies, including two of the 10 largest residential mortgage lenders in the United States. For more information, visit www.capsilon.com.

Progress In Lending
The Place For Thought Leaders And Visionaries

LOS Implementations Can Be Quick And Easy

Open Mortgage, a nationwide mortgage lender, and partners LendingQB and International Document Services (IDS), Inc. successfully implemented a TRID-compliant Loan Origination System (LOS) in just 50 days, exceeding their own projections. “We knew that our implementation timeline was aggressive, wanting to both implement a new LOS and prepare for TRID within 60 days,” said James Howard, CTO of Open Mortgage. “Our success was due to having clear implementation plans with our vendors and a team at Open Mortgage that was dedicated to the project. Our first production loan was entered into the new system just 50 days after our implementation kick-off meeting.”

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The TILA-RESPA Integrated Disclosure (TRID) mandated substantial changes that disrupted the entire mortgage industry, but LendingQB and IDS helped Open Mortgage successfully manage the transition.  “We were working with Open Mortgage on TRID issues before the contract was even signed,” said Binh Dang, president at LendingQB. “We knew it would be a large undertaking and require careful coordination with IDS. But what impressed us the most was how dedicated and focused the Open Mortgage staff was to the implementation project. They were an ideal client.”

“Ensuring partner compatibility with the TRID-related changes we made to idsDoc was a critical component of our TRID preparation strategy,” said Mark Mackey, vice president at IDS. “We spent months testing the changes with our partners like LendingQB to verify that everything was in alignment, compliant and ready to go live by the deadline.”

New functionality provided by the LendingQB LOS allowed Open Mortgage to update and improve existing processes, and adopt LendingQB’s Lean Lending workflow best practices — one of those being a centralized Disclosure Desk.  “Taking greater control of the Disclosure process was key under the new TRID rules,” said Stacy Baccus, Lending Compliance Manager at Open Mortgage during the transition.  “LendingQB has automated triggers that notify us when there are change of circumstance requests, which was a challenge. The ability to respond more quickly and stay on top of disclosure issues cut our turn times in half.”

The E-Sign Platform provided by IDS also allowed Open Mortgage to roll out e-sign for Initial Disclosures to all their branches.  “Our Loan Officers are excited about the new, centralized e-sign system. They love being able to offer that convenience for their clients,” Baccus explained.  “Since we’re in 44 states, testing initial disclosures and closing document packages for all of our products was a big task.  IDS made it easy and any changes or custom documents were handled quickly,” added Howard.

“We closed our first loan just 27 days after the TRID effective date,” recalls Senior Vice President of Lending Greg Block.  “We would not have been able to accommodate TRID’s new rules in our legacy system, so selecting the right technology partners was key to making our transition a success.  I was impressed with the plan IDS and LendingQB laid out for us and our team here executed that plan ahead of schedule. The start of TRID was a disruption for everyone, but we had a record March and April and we’re seeing efficiency increases across the board.”

About The Author

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.

TRID: Another Opportunity Missed

I was amazed but not surprised when I read the results from the 2016 American Bankers Association TRID Survey. It was conducted between February1st and February 17th, 2016. The survey of 548 participants included banks with a wide array of asset sizes across a large geographic area. Despite this diverse pool of respondents, the responses relating to the effect of TRID were almost uniform. Some of the findings:

1.) 73% reported that their Loan Origination System (LOS) still has not been fully updated for the TRID rule

2.) 83% reported that they were manually bypassing LOS systems due to system limitations

3.) 77% reported increased delays in closing

A resounding 94% reported that they would like the current informal grace period for “good faith efforts” to be extended. What would that accomplish? Probably nothing! So what happened? Obviously, we have a problem.

However, let’s put that into perspective and really look at what the word “problem” really means. Problem is defined by Merriam-Webster’s as: A difficulty in understanding or accepting; something that is difficult to deal with; an intricate unsettled question; a feeling of not liking or wanting to do something; a source of perplexity, distress, or vexation. The opposite of a problem would be a correct solution. Malcolm Forbes once said, “It’s so much easier to suggest solutions when you don’t know too much about the problem.”

So let’s examine the current problem from the two perspectives that I believe are causing most of the problems.

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1) What is the strategy to create the LE/CD? In order to comply with TRID and meet its rigid disclosure specifications, the Model/Forms must be followed exactly. For example, if all applicable fees for a subsection on page 2 of the Closing Disclosure do not fit in the space provided, the Rule requires (1) borrowing lines from another subsection within the table, (2) borrowing lines from the other table on that page when all subsections in the table are full, and (3) expanding to two pages when both tables are full. You must precisely follow those steps in order, without the use of an addendum. Conversely, there are certain pieces of information (e.g., property address, borrower and seller data, etc.) that must render on an addendum if they don’t fit in the space provided. The TILA-RESPA Rule states that many of the required disclosures may only render when the feature applies to the loan. The Adjustable Payment and Adjustable Interest Rate tables may only appear if the feature(s) apply to the transaction. There are several YES/NO questions that cannot be check boxes. The Projected Payments table can have 1-4 columns depending on the number of payment changes, but cannot have blank columns.

The architecture for the Loan Estimate and Closing Disclosure solution are far and away a complex and challenging project. The only way to satisfy these disclosure requirements is with a solution that evaluates data and dynamically assembles tables, sub-sections within tables, and pages based on the transaction. You can no longer rely on documents, forms, or templates to assemble and disclose information or choose when to use an addendum and when to dynamically assemble a table. Instead, appropriate software must be implemented to maintain compliance with the Rule. The solution is data-driven dynamic documents.

2) What are the changes needed in the process flow? If there ever was a time for the mortgage industry to consider change, it was when the CFPB first announced the Integrated Disclosures. Some organizations did take this opportunity to develop and incorporate new workflows, while others tended to automate with little, if any, attempt at process efficiencies or new ways to look at the process. Since the lender is legally responsible for the LE/CD collaboration, within tolerance limits, it behooves the lender to control the interaction with the settlement agent. The solution may be the emergence of closing portals to help mitigate some of these issues facing lenders with multiple settlement services.

So what happened? There is no question that TRID was complicated. Initially, there was some pushback to the CFPB as some perceived these requirements as a technology challenge or barriers to implementations. Compliance Systems, like some others, spent countless hours analyzing the rule and developing a solution. A technology initiative of this magnitude needs to be thoroughly documented and stress tested with every possible transaction scenario. That was the time for quality control. Unfortunately, looking at all the issues that have been vented, in appears that was not done. No excuse!

Final Thought: This is part of the overall problem in the mortgage industry. We are resistant to change. We don’t challenge ourselves. Don’t look at how we do business today but instead look at how we want to do business tomorrow. Think about the current problems and business trends and design a system for the future.

About The Author

Roger Gudobba
Roger Gudobba is passionate about the importance of quality data and its role in improving the mortgage process. He is vice president, mortgage markets at Compliance Systems and chief executive officer at PROGRESS in Lending Association. Roger has over 30 years of mortgage experience and an active participant in the Mortgage Industry Standards Maintenance Organization (MISMO) for 17 years. He was a Mortgage Banking Technology All-Star in 2005. He was the recipient of Mortgage Technology Magazine’s Steve Fraser Visionary Award in 2004 and the Lasting Impact Award in 2008. Roger can be reached at rgudobba@compliancesystems.com.

Post TRID Issues Persist

Many of the problems we have seen with TRID have been a result of the disconnect between lenders and settlement agents. Lenders and settlement agents need to get on the same page. It is important to remember in the current regulatory environment, especially under the Consumer Financial Protection Bureau (CFPB)’s TILA-RESPA Integrated Disclosures (TRID) rule, the lender is responsible for accurate and timely delivery of key disclosures to the borrower.

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Historically, the lender prepared early disclosures, often without collaboration with the settlement agent, and the settlement agent carried the burden of preparing the HUD-1 Settlement statement. Now, due to the strict tolerances on fees and high potential fines to the lender, most lenders are preparing the new forms (Loan Estimate and Closing Disclosure forms) themselves and requiring information from the settlement agent earlier in the process.

The collaboration is often via phone or email and not centralized or audited. Since the lenders are on the hook for completing these forms correctly, they need stricter controls and more streamlined processes to reconcile data between the lender’s main system, the loan origination system (LOS), and the settlement agent’s system-the title closing system.

The good news is that lenders and settlement agents are now collaborating, but that collaboration is usually manual. Unfortunately, lenders that are trying to collaborate manually are experiencing numerous issues, such as lack of security, inability to scale, compliance, liability, increase in time and cost, and an incomplete audit trail.

Some lenders claim that the reason they have resisted using electronic portals and collaboration platforms has been due to cost and integration issues, and some are still using email (both encrypted and non-encrypted) and even fax to communicate with closing agents.

For lenders that want to resolve the disconnect with settlement agents, electronic collaboration is key. Lenders need to view electronic collaboration as a competitive advantage.

Here are a number of advantages that electronic collaboration provides:

>> Lenders with the ability to get the CD out earlier

>> Risk mitigation

>> Speed, which can reduce timing pressure from regulators

>> A shift from paper and snail mail to electronic disclosures and proper e-consent that delivers cost and resource savings

>> A complete and secure audit trail to meet regulatory requirements and audits

>> Lenders with the ability to more easily maintain compliance

The right electronic collaboration solution can provide true real-time chat and messaging throughout the collaboration process. Not only does this improve communication between lenders and settlement agents, but it also provides visibility for all parties throughout the entire process.

In addition, lenders can automate post-closing to do’s and receive the final title policy electronically. Knowing when and how documents have been recorded – with the option to e-record—provides for faster turnaround time.

Electronic collaboration can also help with UCD delivery. If a collaboration portal is based on the UCD and MISMO 3.3 standard, then a lender can already be collecting and collaborating on the data in the format it will have to be ultimately delivered to Fannie and Freddie. No further transformation would be needed.

The right technology solution will normalize the data. The delivery of the Uniform Closing Dataset to the GSEs is right around the corner, with testing opening up later this year; therefore, TRID solutions should be based on the MISMO 3.3 standard.

Electronic collaboration can significantly reduce these post TRID issues that continue to persist for many lenders.

About The Author

Paul Clifford
Paul Clifford is President of Simplifile. As President, Paul manages all aspects of Simplifile’s corporate strategy. Recognized as an e-recording industry founder, Paul frequently presents at state and national industry trade shows and conferences. Prior to founding Simplifile, Paul served as the Director of Corporate and Strategic Planning for iLumin Corp., where he was responsible for researching, modeling, and creating strategic business plans and projects, including an automated mortgage transaction initiative for Freddie Mac and Fannie Mae.

Even Consumers Hate TRID

Most in our industry hate the new CFPB rules, and we are not alone because consumers don’t like it either. ClosingCorp, a provider of residential real estate closing cost data and technology for the mortgage and real estate services industries, released the findings of a new national consumer survey of repeat homebuyers that provides insight into how the new TILA-RESPA Integrated Disclosure (TRID) rule is impacting the customer experience in getting and closing a residential mortgage.

The survey interviewed 1,000 repeat homebuyers who had purchased a home both before and after the new TRID rule took effect on Oct. 3, 2015. Here are some of the findings:

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>> 64 percent of respondents said it was easier getting a mortgage under the old rules, than under TRID.

>> In terms of the time it took to get and close a mortgage, 57 percent said it took more time under TRID than it did previously.

>> However, a similar percentage (63 percent) said that the new “Know Before You Owe” forms for loan estimates and closing disclosures were easier to understand than the old forms.

>> 68 percent said the new forms did a better job preparing them for the closing costs they would have to pay (6 percent disagreed). Similarly, 65 percent of the respondents said that the costs and fees were “explained better” in their most recent experience.

>> However, slightly more than half (51 percent) of the respondents said there were more “unexpected costs, fees and surprises” in their most recent experience.

“There’s been a lot of speculation about TRID’s impact and its value to consumers,” said Brian Benson, chief executive officer of ClosingCorp. “Our new study of consumers who have bought homes and gotten mortgages both the new and the old way suggests that TRID is making it easier for consumers to understand the costs and fees that they’ll face at closing. But at the same time, the new rules are adding time and anxiety to the closing process and more than half of the respondents still said they encountered ‘unexpected costs, fees and surprises’.

“The findings suggest that our industry has more work to do to get comfortable with the TRID forms and processes, and to educate consumers and their advisors. Our clients and partners believe technology and integrated data and communications will provide the long-term solution to these challenges.”

And here I thought TRID was supposed to improve the consumer’s experience. I guess I was mistaken.

About The Author

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.

Executive Spotlight: Ben Wu of LoanScoreCard

BenWu_LoResBen Wu is executive director of LoanScoreCard, a leading provider of automated underwriting and compliance solutions and subsidiary of CalyxSoftware. Wu has more than 20 years of experience in the mortgage industry and is one of the founding members of CalyxSoftware. Joining the company in 1994, Wu developed the first Windows version of Point. Since then, Wu has been instrumental in the conception and implementation of several Calyx solutions, including Point Central, WebCaster and LoanScoreCard. Wu holds a bachelor’s degree from the University California Berkeley and a master’s degree in computer science from Stanford University. Here’s how he sees mortgage lending:

Q: Non-agency originations have grown significantly over the past year. What are some of the challenges that lenders face if they underwrite these loans manually?

BEN WU: The non-agency space is growing by leaps and bounds. Although it’s still a small portion of overall mortgage originations (representing less than 20% of all mortgages), it grew approximately 40% in 2015. From an originator’s perspective, manually underwriting these mortgages can take hours, sometimes days, for just one loan. These manual processes are also prone to human error and can expose you to compliance risk. For example, loan officers need to follow the different guidelines of different investors. But if each investor has a 100+ page document that the loan officer needs to follow, it’s practically impossible to originate correctly to all of these different guidelines. And of course, there’s the fear that if you don’t dot every “i” and cross every “t”, then you’re in a possible buy back situation, which could potentially put an originator out of business. Not only have lenders had to rework their entire workflow to be in compliance with QM agency loans, they have this additional growing need for what amounts to a separate workflow to ensure compliance and risk for non-agency originations.

Q: Are there any solutions available that can help them automate non-agency underwriting?

BEN WU: Our company offers a Custom Automated Underwriting System (AUS) that allows lenders to customize credit decisioning and safely originate compliant assets. Whether you’re a correspondent originator selling to secondary market investors or a bank or credit union originating loans to be held in portfolios, we can take whatever set of guidelines you are underwriting to and capture that within our engine. Custom AUS delivers an underwriting decision and an assessment report that includes a breakdown of every rule applied to that loan and whether you passed or failed that particular guideline—creating an audit trail for underwriting and ability-to-repay decisions. It can also accommodate third-party origination programs and helps ensure consistent, transparent credit policy application to prove Fair Lending. This automated solution helps underwriters focus on exceptions and the proper application of credit policy—improving efficiency and giving lenders greater peace of mind.

Q: It’s been six months since TRID has taken effect. What’s the impact been on your company and your clients?

BEN WU: TRID has been a learning experience for our entire industry. It’s presented enormous challenges for everyone: brokers, lenders, investors, LOSs, doc providers, settlement services companies, Realtors®, etc. I assume everyone has had horror stories about the early days of implementation and/or about less-common loan situations. Our clients primarily consist of small to mid-sized organizations and it’s not uncommon for these firms to operate without an IT department, a compliance officer or a system expert; leaving many business owners and originators who are trying to wear multiple hats. We’ve made some changes to help them better face these challenges, including increasing our support staff and the number of free resources available to help make the TRID transition as painless as possible.

Q: What’s the next big thing lenders should be focusing on?

BEN WU: Now that TRID has come and gone and the industry hasn’t completely imploded, the new Home Mortgage Disclosure Act (HMDA) data collection requirements is right around the corner. Based on the CFPB’s proposal, the final rule will dramatically increase reporting requirements and surprise lenders who have been lax on HMDA reporting and analysis, thus far. The new requirements will expand potential fair lending liability for covered institutions. Using the new information, regulators, advocacy groups and plaintiff’s attorneys will draw their own conclusions as to whether discriminatory lending patterns exists. In addition to mastering the new reporting requirements, prudent lenders will also take steps to analyze and explain their lending data.

Being able to demonstrate that a consistent, quality underwriting process is used to manufacture your assets will be essential for preparing for these new rules. The time to make process and technology changes is now and not next year when the rules take effect. If TRID has taught us anything, it’s that two years may sound like a long time to get ready—but it isn’t.

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.

TRID Relief Program Launches

CC Pace, a mortgage process and technology consulting firm has announced the launch of their “TRID Rapid Review” program. Created to address the challenges the industry is experiencing with meeting TRID regulations, this program is designed to lessen the burden of compliance and give immediate relief to lenders.

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CC Pace recently conducted an independent study of lenders nationwide and found that 2 out of 3 lenders are experiencing significant levels of pain related to their TRID implementations.

These challenges are having a dramatic impact throughout the industry, driving costs to produce up and profitability down. In speaking with lenders, CC Pace found that a majority viewed TRID as a technology issue, often failing to fully prepare for the operational changes that were needed. CC Pace’s “TRID Rapid Review” is designed to help solve for these challenges with an action- oriented combination of operational and technology assessment and swift implementation of corrective fixes to client-specific pain points.

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“The ripple effects of inadequate preparation and partial implementation for TRID are felt in all aspects of the mortgage business from the customer experience to productivity and bottom line profitability,” said Craig Hughes, Managing Director of Financial Services Consulting for CC Pace. “Our approach allows lenders to remain focused on moving live production through the existing pipeline, while having an independent mortgage process expert help design and implement rapid response solutions for measurable operational improvement. As easy as that may sound, our sophisticated approach delivers both short and long-term solutions.”

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.

What Are The LOS Firms Up To?

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Every LOS has been busy tackling TRID for some time now. Well, that threat is behind us. So, I started to think: What are the various LOS players up to now? Here’s what I found:

First, Ellie Mae recently launched three new solutions. The Ellie Mae Compliance Management System, Ellie Mae’s next generation Encompass CRM and the Encompass Mobile solutions were unveiled at the Ellie Mae Experience 2016 user conference.

The Ellie Mae Compliance Management System allows lenders to establish compliance policies, procedures and responsibilities, educate management and staff, easily qualify vendor partners and quickly track and respond to customer complaints. Designed for mortgage lenders, banks and credit unions of all sizes who need to demonstrate compliance with the Consumer Financial Protection Bureau (CFPB) and other regulatory requirements, the Ellie Mae Compliance Management System is a unified system-of-record for all mortgage compliance data. It leverages Encompass and Mavent Compliance Service, which performs more than 370 federal, state and local consumer protection compliance reviews during the loan lifecycle, and AllRegs Online, a library of federal and state compliance resources to help lenders employ the correct policies and procedures and stay current with the latest regulatory changes. Additionally, it offers the following new components:

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>> Policy & Education Manager: A comprehensive learning and content management system to help employees stay compliant with current regulations, agency guidelines and organizational best practices. Assign educational modules, track progress and create reporting to ensure your board, management and staff understand your organization’s policies, procedures and responsibilities.

>> Vendor Manager: A one-stop resource library of due diligence documentation and resources for Ellie Mae’s broad network of vendor partners.

>> Complaint Manager: A best-in-class service to manage consumer complaint resolutions, processes and best practices, including contacts, customers and tracking of communication history, as well as case management of customer complaints.

Ellie Mae’s next generation Encompass CRM provides automated one-to-one marketing, compliance and business intelligence needed to capture and keep the attention of referral partners, prospects and customers. Lenders can dramatically increase marketing effectiveness through personal, individually tailored communications while increasing the effectiveness of campaigns utilizing robust business intelligence. Specifically, Encompass CRM offers:

>> Automated One-to-One Marketing: Unique, detailed and tailored marketing campaigns, automatic prospect assignments based on individual situations, and access to a library of more than 200 email template campaigns, newsletters, videos and direct mail specifically designed for mortgage targets, as well as the ability to customize your own content.

>> Business Intelligence: Enables lenders the ability to benchmark against competition, identify of areas for improvement and the ability to capitalize on opportunities through detailed reporting that shows productivity, ROI and LO/branch performance.

>> Compliance & Control: Offers sophisticated, legally reviewed compliance and the best data security in the industry—SOC 2 Type II audit certification, along with improved compliance through one system of record.

Encompass Mobile is a robust, scalable mobile platform that is an extension of Encompass. Encompass Mobile lets users seamlessly interact with Encompass from iPhones, iPads and Android devices without having to download special apps or install client software. Encompass Mobile:

>> Offers real-time access to pipelines, anywhere, from any device,

>> Enables the ability to take applications, order credit, and lock a rate using data from the Encompass Product & Pricing Service, and

>> Was designed with the highest levels of data access and application security built-in.

“As we continue to drive toward our mission of automating everything automatable in the residential mortgage industry, these best-in-class solutions extend and enhance our already powerful Encompass offering and add value for lenders of all sizes,” said Jonathan Corr, Ellie Mae president and CEO. “Through the launch of our next generation Encompass CRM, the Ellie Mae Compliance Management System and Encompass Mobile, we’re enabling our customers to ensure compliance while operating more efficiently and effectively.”

Second, Calyx Software has developed separate versions of its Pricer Product & Pricing Engine for portfolio lenders with their own rate sheets (Custom Pricer) and originators looking for investor pricing supplied by Calyx (Investor Pricer).

Both versions are used seamlessly with Calyx Point, eliminating multiple logins, loan program templates, and the need to rekey data. The bidirectional data flow simplifies processes and improves accuracy and efficiency. Users can locate the best deals for their clients, see the street price for borrowers, and lock or float rates and their loans all online within the software they use every day.

Bob Dougherty, vice president of mortgage operations, Merchants Bank, N.A. who has used Pricer for years, particularly appreciates the product’s ease of use and the automated accuracy he can count on. “Having all loan products in one place, with the ability to check the loan levels for each and see any adjustments, keeps our team on track at all times. Pricer has sped up production and reduced error, which helps our originators be more efficient and profitable.”

Loan originators can price scenarios instantly and correctly in both versions without using paper, and only eligible rate cards and programs are visible to users. Rate and fee information, including Loan Level Price Adjustments (LLPAs), are automatically imported into loan files. Pricer also sends, tracks and preserves every rate quote and lock request.

“The latest enhancements to our Pricer solution are designed to better match the specific needs of both buyers and sellers in today’s more complex, post-TRID, post-QM market,” said Dennis Boggs, executive vice president, Calyx Software. “Our product and pricing engine gives originators the broadest view of what is available.”

Lastly, Advantage Credit Inc., a leading provider of credit reporting services to the mortgage industry, is pleased to announce that all credit and settlement services are now available through LendingQB, a 100% web browser-based, end-to-end mortgage loan origination system (LOS).

Users of LendingQB will now be able to seamlessly access all of Advantage Credit’s services without leaving the platform, giving users the ability to close loans much more quickly and efficiently. Integrated services include credit reports, tradeline supplements, undisclosed debt verification, identity verification, AVM, tax return verifications, verification of employment, verification of deposits and flood certificates.

While navigating within a loan file, LendingQB users order multiple services through a unified interface, consolidating what was previously an array of time consuming tasks. When orders are complete, any returned documents are stored electronically and data associated with the service is automatically populated onto the loan file. The interface also displays a total cost for all Advantage Credit services so that fee information is completely transparent to the user.

What can we learn from what these LOS players are doing? There is an emphasis on mobile computing, lights-out processing and tighter integrations. What does this mean? The major LOS systems are moving on and automating more of the mortgage process each and every day.

About The Author

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.

Collaboration Is Key To TRID

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As the mortgage industry continues to respond to constantly changing rules and regulation, particularly the TILA-RESPA Integrated Disclosure rule requirements, one thing has become readily apparent — the only way to stay compliant is to improve collaboration between lenders and settlement agents.

Historically, the lender prepared early disclosures, often without collaboration with the settlement agent, and the settlement agent carried the burden of preparing the HUD-1 Settlement statement. Now, due to the strict tolerances on fees and high potential fines to the lender, most lenders are preparing the new forms, the Loan Estimate and Closing Disclosure, themselves and require information from the settlement agent earlier in the process.

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The real question is not whether you believe collaboration is necessary, but if as a lender that collaboration will be manual or automated. Good collaboration technology will solve and automate the issues of fee naming, data re-entry and provide a systemic, auditable real-time process that is defensible.

“Collaboration with closing agents is crucial to deliver accurate Closing Disclosures in a timely manner,” said Jim Connell, chief information officer at Sierra Pacific Mortgage.“Simplifile is a well-designed solution with a clean interface that follows the Closing Disclosure format and will be easy for our staff to use.”

“One of the biggest issues with TRID is how lenders and settlement agents communicate changes to various documents on a timely basis,” said Country Bank Loan Servicing Officer Robert Olivier. “Simplifile’s Collaboration and Post Closing portal provides the ideal solution for us to collaborate on these changes to meet the required timeframes. It’s extremely well-designed and easy to use, which is a huge benefit for both our staff as well as our settlement agents.”

Good collaboration technology needs to include: collaboration, e-recording, and post closing that will connect lenders to settlement agents and allow both parties to securely share, validate, audit, track, record and collaborate on loan documents, data, and fees to ensure compliance.

“We already partnered with Simplifile on their e-recording solution for our servicing needs,” Oliver added. “We were very pleased with the increase in efficiencies we achieved using that product and the support that Simplifile provided to us. They have been very responsive to our needs and are committed to making sure that the Collaboration and Post Closing portal will help ensure that Country Bank is in compliance with the TRID regulations.”

Shane Erksine, president of OneTrust Home Loans, said, “One of the major reasons we chose Simplifile as our partner was their established network of settlement agents who are already using their services every day. We’re confident in their proven ability to provide an easy-to-use service with an intuitive interface that can successfully bridge the gap between multiple parties in the mortgage and real estate transaction.”

“Simplifile offered a great price and great product; what more can you ask for?” said Mortgage Closing Manager Kele Cuddy at First Community Mortgage. “Simplifile will help First Community Mortgage and our settlement agent partners quickly share fees and documents to meet Closing Disclosure (CD) and final documents timelines and requirements.”

With good collaboration technology, lenders don’t have to worry about tracking documents, data or communication through a separate system or service. Messaging between lenders and settlement agents within a good collaboration solution is tracked as part of the complete audit trail and reporting provided to aid in TRID compliance.

Our established e-recording network gives both parties the unique ability to view, access, and share post-closing information and statuses on recorded documents and data centrally. Simplifile’s platform is independent, supporting paper, hybrid, and fully electronic closings, and Collaboration and Post Closing are free services to settlement agents, helping to drive industry adoption.

About The Author

Paul Clifford
Paul Clifford is President of Simplifile. As President, Paul manages all aspects of Simplifile’s corporate strategy. Recognized as an e-recording industry founder, Paul frequently presents at state and national industry trade shows and conferences. Prior to founding Simplifile, Paul served as the Director of Corporate and Strategic Planning for iLumin Corp., where he was responsible for researching, modeling, and creating strategic business plans and projects, including an automated mortgage transaction initiative for Freddie Mac and Fannie Mae.

Lenders Find Collaboration Key To TRID

As the mortgage industry continues to respond to constantly changing rules and regulation, particularly the TILA-RESPA Integrated Disclosure rule requirements, one thing has become readily apparent — the only way to stay compliant is to improve collaboration between lenders and settlement agents.

Historically, the lender prepared early disclosures, often without collaboration with the settlement agent, and the settlement agent carried the burden of preparing the HUD-1 Settlement statement. Now, due to the strict tolerances on fees and high potential fines to the lender, most lenders are preparing the new forms, the Loan Estimate and Closing Disclosure, themselves and require information from the settlement agent earlier in the process.

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The real question is not whether you believe collaboration is necessary, but if as a lender that collaboration will be manual or automated. Good collaboration technology will solve and automate the issues of fee naming, data re-entry and provide a systemic, auditable real-time process that is defensible.

“Collaboration with closing agents is crucial to deliver accurate Closing Disclosures in a timely manner,” said Jim Connell, chief information officer at Sierra Pacific Mortgage.“Simplifile is a well-designed solution with a clean interface that follows the Closing Disclosure format and will be easy for our staff to use.”

“One of the biggest issues with TRID is how lenders and settlement agents communicate changes to various documents on a timely basis,” said Country Bank Loan Servicing Officer Robert Olivier. “Simplifile’s Collaboration and Post Closing portal provides the ideal solution for us to collaborate on these changes to meet the required timeframes. It’s extremely well-designed and easy to use, which is a huge benefit for both our staff as well as our settlement agents.”

Good collaboration technology needs to include: collaboration, e-recording, and post closing that will connect lenders to settlement agents and allow both parties to securely share, validate, audit, track, record and collaborate on loan documents, data, and fees to ensure compliance.

“We already partnered with Simplifile on their e-recording solution for our servicing needs,” Oliver added. “We were very pleased with the increase in efficiencies we achieved using that product and the support that Simplifile provided to us. They have been very responsive to our needs and are committed to making sure that the Collaboration and Post Closing portal will help ensure that Country Bank is in compliance with the TRID regulations.”

Shane Erksine, president of OneTrust Home Loans, said, “One of the major reasons we chose Simplifile as our partner was their established network of settlement agents who are already using their services every day. We’re confident in their proven ability to provide an easy-to-use service with an intuitive interface that can successfully bridge the gap between multiple parties in the mortgage and real estate transaction.”

“Simplifile offered a great price and great product; what more can you ask for?” said Mortgage Closing Manager Kele Cuddy at First Community Mortgage. “Simplifile will help First Community Mortgage and our settlement agent partners quickly share fees and documents to meet Closing Disclosure (CD) and final documents timelines and requirements.”

With good collaboration technology, lenders don’t have to worry about tracking documents, data or communication through a separate system or service. Messaging between lenders and settlement agents within a good collaboration solution is tracked as part of the complete audit trail and reporting provided to aid in TRID compliance.

Our established e-recording network gives both parties the unique ability to view, access, and share post-closing information and statuses on recorded documents and data centrally. Simplifile’s platform is independent, supporting paper, hybrid, and fully electronic closings, and Collaboration and Post Closing are free services to settlement agents, helping to drive industry adoption.

About The Author

Paul Clifford
Paul Clifford is President of Simplifile. As President, Paul manages all aspects of Simplifile’s corporate strategy. Recognized as an e-recording industry founder, Paul frequently presents at state and national industry trade shows and conferences. Prior to founding Simplifile, Paul served as the Director of Corporate and Strategic Planning for iLumin Corp., where he was responsible for researching, modeling, and creating strategic business plans and projects, including an automated mortgage transaction initiative for Freddie Mac and Fannie Mae.