A nimble business structure will help smaller lenders more effectively implement upcoming mortgage disclosure changes than their big bank counterparts, according to one industry player.
“The TRID fallout will be interesting – smaller lenders will be able to better handle the changes; we’ve collaborated with an attorney firm and they have developed a portal that allows for collaboration between the firm, the lender and the title company to work on closing disclosure,” Robert Poe, vice president of Inwood Bank told MPA. “They can go into the portal and approve each other’s changes.”
According to Poe, the process differs from that which the big banks will use, who will bring it all in-house.
Both will have more time to prepare for the changes, however, with the CCFPB has announced Wednesday it will delay the effective date of the Know Before You Owe rule.
“We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks,” said CFPB Director Richard Cordray. “We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”
The rule was originally set to go into effect Aug. 1. When it does go into effect, it will require new rules that consolidate the TILA-RESPA forms, and is intended to allow consumers more time to parse documents and better understand the cost of their mortgage.
Small players are betting on themselves to better handle TRID, and in doing so win more potential business from the big banks.