eLynx IdeaWorks

TRID Sets New Standards For What Can Change and What Can't

Posted by Dewey Kelly on Mar 16, 2015 11:06:49 AM

fee_variance

Starting August 1st, lenders will have to abide by new restrictions on how much variation is allowed between the Loan Estimate and the Closing Disclosure. Knowing what can change and by how much is one of the challenges facing lenders and settlement service providers (SSP) as they gear up for the new Integrated Disclosures. We’ve all probably read through or heard about the new tolerances but for many in the industry, unless they are engaged in ramping up for TRID, the details aren’t always crystal clear.

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Topics: Integrated Disclosures, TRID

5 Takeaways from the MBA-ALTA TILA-RESPA Integrated Disclosures Forum

Posted by Alec Cheung on Feb 25, 2015 4:00:27 PM

forum

Last week, I attended the Miami session of the MBA-ALTA sponsored TILA-RESPA Integrated Disclosures (TRID) forum. Being the second of five such forums, there are still three remaining to attend if you want to catch one of these full-day sessions. I highly recommend these for anyone wanting to understand the detailed issues currently being addressed as the mortgage industry prepares for August 1. As Brian Webster of the CFPB noted in his forum remarks, the challenge with TRID now is all operational — how to handle the numerous implementation questions that arise when trying to put new TRID-based process into place. And there certainly are a lot of issues. The session was jam packed with little time to rest in between each topic. Here are five key points I took away from Miami.

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Topics: Integrated Disclosures, TRID

Why Lenders Need To Communicate Approach to Closing Disclosure Now

Posted by Alec Cheung on Feb 13, 2015 5:22:57 PM

closing_disclosure

One of the areas most affected by TILA-RESPA Integrated Disclosures (TRID) is the coordination of workflow between lender (creditor) and settlement service provider (agent) in the production of the Closing Disclosure (CD), the new form that replaces the HUD1 for loans initiated as of August 1 of this year. While both parties have always interacted to create today’s HUD1, the dynamic of that interaction is going to shift with lenders taking over ultimate responsibility for the generation and sending of the CD three days in advance (in most cases, and everyone that we have seen so far). Settlement service providers will not be producing the CD and instead will be asked to by lenders to provide critical information that only they have. Therefore, lenders should communicate as soon as possible with their settlement service provider community on how they plan to produce the CD, what information they will require, and how they expect this interaction to function in the new TRID world.

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Topics: Integrated Disclosures, TRID

eLynx Does Not Fear the “GHOST” Linux Bug

Posted by Rick Wagner on Feb 5, 2015 12:11:55 PM

canstockphoto2558890A vulnerability disclosed on January 27 in the GNU C Library (“glibc”) CVE-2015-0235, known as “GHOST” in the media, affects Linux systems that use versions of the library glibc 2.2 through 2.17. The GNU C Library is commonly used for standard system calls by programs written in C and C++. The vulnerability is a heap-based buffer overflow which affects the gethostbyname() and gethostbyname2() glibc function calls. A remote attacker who is able to make an application call with either of these functions could use this flaw to execute arbitrary code with the permissions of the user running the application.

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Topics: Information Security

Integrated Disclosures: It's Not Just About the Consumer, It's About Data

Posted by Alec Cheung on Jan 30, 2015 11:00:56 AM

data_standard

By all measures, 2015 is going to be a year shaped heavily by compliance, mainly because of the CFPB-driven TILA-RESPA Integrated Disclosures and the game-changing nature of these new rules. While designed to help consumers better understand mortgages, these compliance changes will also have, or arguably are already HAVING, a ripple effect – accelerating the mortgage industry’s adoption of data standards. Mark Mackey, CEO of IDS, described it rather well when he noted that investors and regulators are shifting their emphasis from away from documents and to data as the better determinant of loan quality. According to Mark:

“Once upon a time, documents themselves were considered the most critical element of the loan package… Now, the script has flipped, so to speak, so that data trumps docs in the eyes of investors and regulators alike.”

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Topics: Data Standards

Mastering the CFPB's Three-Day Rule for Integrated Disclosures

Posted by Dewey Kelly on Jan 22, 2015 6:04:04 PM

customer engagement

One of the least intuitive aspects of the new TILA-RESPA Integrated Disclosures (TFID) rule is how to get the Closing Disclosure to the consumer for the mandated three-day review period prior to closing a loan. Most lenders will calculate the consummation date to be six days after the Closing Disclosure is sent. However, there is a way to cut that time by as much as 50% using electronic deliveries and by proactively engaging the borrower in the process.

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Topics: CFPB Regulations, Integrated Disclosures, TRID

How Settlement Agents Can Influence Closing Process Changes Under Integrated Disclosures

Posted by Alec Cheung on Jan 15, 2015 2:00:10 PM

settlement_service

Just about every lender we know of is taking over the creation of the new Closing Disclosure come August 2015. Even a lender who opts to delegate the creation of the CD to settlement service providers realizes that a level of collaboration above and beyond what exists today is needed. We have discussed one of the ways in which that collaboration can be accomplished in this second piece of a two-part HousingWire article. eLynx has data extraction and fee collaboration capabilities that will help settlement service providers support lenders in the creation of the Closing Disclosure. However, to maximize efficiency, accuracy and completeness, the ideal solution would be to fully integrate the generation and delivery of Closing Disclosures into the very title production systems that settlement services providers use in their daily business.

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Topics: CFPB Regulations, Integrated Disclosures

Why eDelivery is the Best Way to Capture Intent to Proceed

Posted by Alec Cheung on Jan 8, 2015 10:26:00 AM

tablet

New CFPB regulations include several requirements for how creditors interact with consumers and collect fees during the loan origination process. Their intent is to allow consumers to shop for a mortgage loan without paying upfront fees. The requirements specify that creditors are not permitted to collect a fee from a consumer as part of a mortgage application process, outside of the fees for a credit report, before the consumer has received the Loan Estimate. Fees can only be collected AFTER the consumer indicates an intent to proceed with the terms documented in the Loan Estimate.

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Topics: CFPB Regulations

6 Features to Look for in a Consumer eDelivery Portal

Posted by Alec Cheung on Dec 17, 2014 2:26:00 PM


canstockphoto9678030

While many questions remain unanswered about how lenders and settlement service providers will adjust to the August 2015 TILA-RESPA Integrated Disclosures, one thing is for certain: consumer experience will only become an even more important measure of lender success. As processes are being re-designed in light of these new disclosure forms, existing best practices are still relevant even as new standards are being formulated. Below are six characteristics to look for in a consumer eDelivery portal that can support electronic delivery and signature of loan documents both now and post-August 2015.

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eLynx Implemented Patches Against Shellshock Bug

Posted by Rick Wagner on Sep 29, 2014 4:52:00 PM

As you may know, a significant Internet security bug has been identified, verified and communicated via many news and industry sites last week. This bug, named "Shellshock" by security researchers, affects the Unix command shell "Bash," which happens to be one of the most common applications in those systems. That includes any machine running Mac OS X or Linux. The "shell" or "command prompt" is a piece of software that allows a computer to interact with the user by interpreting text. This vulnerability affects the shell known as Bash (Bourne Again SHell), which is installed not only on computers, but also on many devices (smart locks, cameras, storage and multimedia appliances, etc.) that use a subset of Linux.

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Topics: Information Security

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