Title Security’s February Coffee Corner was a success!
The topic of discussion was the Integrated Mortgage Disclosure Rule. This rule will bring changes on how realtors, mortgage brokers/lenders and title insurance companies do business in the future. The rule goes into effect August 1, 2015, replacing the Good Faith Estimate and early TILA with the new Loan Estimate. The HUD-1 and the final TILA is replaced with the new Closing Disclosure. With these changes to the forms comes changes to the systems that produce these forms.
3 key points to the change and how they will affect the way business is conducted:
1. Communication-communication-communication: In order to meet the Closing Disclosure 3 day requirement and the closing date, it will be imperative that there is communication between all parties. There are deadlines that need to be met, fees that need to be disclosed and cooperation needed between all parties. Now is the time to discuss what new systems need to be put in place and how to go about implementing these systems.
2. Relationships: The settlement agent is the liaison between the creditor and the realtor. They are key in the training, preparation and delivery of the forms. The closing agent is the center of communication. Make sure the closing agent you are dealing with is well versed in the new rule changes to avoid pitfalls during the closing process.
3. Planning: Now is the time to start planning and implementing your strategies before the rule goes into effect. Have roundtable discussions with realtors, mortgage brokers/lenders and settlement agents. The sooner you plan and become organized the easier the transition will be.
Title Security will continue to have training and information sessions. Stay tuned for announcements of when these will be held. If you have any questions, or would like to attend one of our sessions, please email me at Barbi@titlesecurity.net.
Planning, communication and working together will make the transition a smooth one!