MISMO Adoption is key to getting head start on HMDA

Q: Despite a grace period for the Consumer Financial Protection Bureau's (CFPB) TILA-RESPA Integrated Disclosure (TRID) rules, what are the biggest obstacles that mortgage lenders making a "good faith effort" to comply will need to overcome, and how can they get up to speed by this spring?

Matthews: Though there are many critical flashpoints related to TRID, the greatest obstacles lenders currently face are involved in the collaboration with settlement agents on the closing disclosure (CD) and the obtaining of accurate fees for the loan estimate. TRID is a complex rule to operationalize because it requires a greater degree of coordination between lenders, settlement agents and other supporting players. It significantly changes the process flow that lenders have typically used for so long by making the lender responsible for the creation of the CD.In addition, because of higher expectations around vendor management, lenders need ways to obtain accurate fees from the settlement agents they rely on for closing. They must obtain these fees much earlier and ensure they understand when and why those fees may have changed during the loan origination process.Many lenders, knowing that the challenges would be significant, opted to start out using manual processes to tide them over until new systems and solutions could be put in place...Read More Here

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