“With the TILA-RESPA (TRID) changes, being able to connect lenders to their settlement agents is more important than ever to get the fee collaboration and transaction details right,” said Nancy Alley, vice president of strategic planning at Simplifile. “Trailing documents continue to be an industry pain point. Lenders need to know where the documents are and what has happened to them after closing.”
Lenders and settlement agents will soon need to share loan documents, fee data and transaction details more seamlessly in order to meet the regulatory changes associated with TRID.
Document packages traditionally can total 100 pages or more, and closings can take hours – which makes the online option that much more attractive for everyone involved.
One credit union servicing Utah has been offering largely paperless closings for years.
Amy Moser, the credit union’s vice president for mortgage services, said about 70% of its mortgages were closed using a hybrid electronic process. Ostensibly that should help lenders and settlement agents better meet TRID guidelines.
Still, a number of real estate industry trade groups continue to call for a “hold-harmless” grace period for TRID enforcement, to ensure real estate closings will not be disrupted once the new regulations go into effect on October 3.
Improving communication between lenders and settlement agents is the goal of online mortgage processing – and that hasn’t become any easier with the introduction of the new TRID rules.