On October 3, 2015 the Truth in Lending – Real Estate Settlement Procedures Act Integrated Disclosures (“TRID”) took effect. The implementation of these new disclosures addresses the removal of redundant and inconsistent information and language from many of the current disclosures being used, and also creates efficiency and ease of use for consumers and lenders. In particular, the Loan Estimate and Closing Disclosure were created to consolidate and replace four different disclosure forms. Ultimately, this change will help consumers better understand important aspects of the loan they’ll be applying for, such as the risks and costs associated with their loan. However, these disclosures also impose new obligations on lenders, such as a 3 day review period for the Closing Disclosure and other matters.
Compliance with the new TRID disclosures is mandatory, meaning if your organization is making residential loans it will need to make adjustments to your risk assessments to reflect the regulatory changes.
In an effort to ensure our clients are meeting their compliance obligations in the most efficient way possible, WolfPAC added and updated questions in the Truth in Lending questionnaires in our Regulatory Compliance Risk Assessmentmodule that covers the TRID disclosures. We also removed Real Estate Settlement Procedures Act disclosure questions that are no longer relevant based on these changes. Within the module, you will find a list of questions based on the amended regulations to address the new disclosures.
These additions will also allow your organization to create a monitoring plan within the module to ensure your organization’s compliance with the rules as you move forward accepting new loan applications.
For more information on our Regulatory Compliance Risk Assessment module or to schedule a demo to experience how our solution can simplify your compliance requirements, contact us and speak to one of our experts today.