The mortgage industry is undergoing unprecedented change, and lenders are weighing the move to eClosings—because in the current environment, it’s no longer a question of if, but when. Gavin Ales, DocMagic’s Chief Compliance Officer, shares his insights about the compliance issues these lenders are facing.
Starting March 1, 2021, all lenders who intend to sell closed residential mortgage loans to Fannie Mae or Freddie Mac will be required to use the new Uniform Residential Loan Application (URLA), the standard form that borrowers use to apply for a mortgage loan.
On Aug. 26, the Federal Housing Finance Agency (FHFA) announced an extension of its policies providing for Fannie Mae and Freddie Mac (the GSEs) to continue to purchase loans that entered a COVID-related forbearance prior to purchase. The GSEs’ policies were set to expire Aug. 31, but the announcement extends the policies to Sept. 30.
It may seem like the need for print fulfillment services is counterintuitive to digitizing the mortgage process, but the two things aren’t mutually exclusive.
Introduction to TRID 2.0
Throughout the month of September Chief Compliance Officer, Gavin Ales, will introduce some of the major changes coming with TRID 2.0 and provide clarification for each topic along with expert commentary on the new regulations, what has changed and what it means to be compliant.
Training and Education Manager, Ron Carillo, will show you how and where to get started testing TRID 2.0 implementation inside DocMagic.
Below, you’ll find the topics for current and upcoming episodes of TRID Talks.
Got questions about TRID 2.0? Contact us at email@example.com
Industry experts weigh in on recent changes to Fannie Form 1003/Fredie Form 67.
By Patrick Barnard
In the first update for the form in more than 20 years, government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have redesigned the Uniform Residential Loan Application (URLA – Fannie Form 1003/Freddie Form 67) in order to make it simpler to use and to add new data fields for increased reporting under the Home Mortgage Disclosure Act (HMDA).
Press Release:D+H adds new clients after signing reseller agreement with DocMagic in October 2015
LAKE MARY, FL, Aug. 15, 2016 /CNW/ - DH Corporation (TSX:DH) ("D+H"), a leading provider of technology solutions to financial institutions globally, today announced that it has brought on more than 100 new lendersto its MortgagebotLOSTM solution, after signing a reseller agreement with DocMagic, Inc. ("DocMagic") last October. DocMagic is a leading provider of fully compliant loan document preparation, compliance, eSign and eDelivery solutions.
Dominic Iannitti, president and CEO of DocMagic, talked candidly about what the mortgage industry needs to do to improve the lending process.
With the TRID deadline behind us, the industry is breathing easy again. But should it? Recently ComplianceEase, a provider of automated compliance solutions to the financial services industry, released an analysis of compliance defects for closed loans and estimated that the cost of correcting these errors is increasing the cost of origination, on average, by approximately $28 for every loan. The analysis was based on a cross-section of 700,000 audits that were performed in ComplianceAnalyzer and RESPA Auditor during the first quarter of 2015. It found that 17 percent of the loans failed for Truth in Lending Act (TILA) reasons. Another 6 percent of the loans—or one in 15—failed for being outside of the Real Estate Settlement Procedures Act (RESPA) tolerances.
So, this industry clearly is struggling with compliance. The answer to ironclad compliance is migrating to a truly data-driven process according to Dominic Iannitti, president and CEO of DocMagic.
Lenders are also looking ahead at other technology initiatives to bolster their competitive advantage at a time when more purchase originations are expected to take a larger share of overall mortgage lending.
"TRID was like the story of the century because it had such an impact on technology, process and regulatory compliance. The story in 2016 will be auditing that compliance," said Tim Anderson, director of eServices at Torrance, Calif.-based document technology provider DocMagic.
Enables lenders to adhere with TRID requirements and provides the SmartCLOSE™ portal for settlement providers and other parties to collaborate efficiently, compliantly and cost effectively
TORRANCE, Calif., Oct. 1, 2015 — DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that PHH Mortgage (“PHH”), one of the largest providers of residential mortgages in the United States, has signed a multi-year license agreement to use its expansive set of products to help ensure compliance with the TILA-RESPA Integrated Disclosure (TRID) rule that goes into effect on Oct. 3, as well as other federal, state and investor requirements.
“We have worked closely with DocMagic for the last year to thoroughly evaluate, test and integrate their technology and compliance solutions, and we will use various components to ensure we are TRID compliant,” said Eric Sadow, chief compliance and fair lending officer. “We are confident that our use of the DocMagic technology and compliance solutions will meet our needs and the needs of our clients, regulators, investors, partners and borrowers.”