Four Important C's Covered at TRID Forum

by Hilda Avila, RBJ Sales Manager


Lexie (RBJ’s Integrated Closing Disclosure guru) and I attended the TILA RESPA Integrated Disclosure (TRID) Forum on January 29 in Los Angeles. The forum was a joint effort of American Land Title Association (ALTA) and Mortgage Bankers Association (MBA) – Los Angeles being the first of five scheduled throughout the nation. The theme repeated throughout the day was communication and collaboration, in particular between escrow/settlement and the lender. The Consumer Financial Protection Bureau’s (CFPB) meaning of consummation and California escrow/settlement practitioner’s definition of closing provided for some lively discussion.

A series of panelists presented six different topics: 1) Latest from the CFPB, 2) Getting from Pre-Application to Loan Estimate, 3) The Rule’s Implications for Closing Settlement, 4) Helping Your Operations Complete the New Forms, 5) Using Technology to Collaborate and Solve Compliance Problems, and 6) Changing the Real Estate Transaction.

What a collection of knowledge, experience, diversity and professionalism in the room!

Spanning from overview to detail about the Loan Estimate and Closing Disclosure, the rule, the form, and the “how-tos”, the forum was rich with information. I’m not going into that detail here, (RBJ will conduct webinars for our clients on use of the form in RBJ’s software, and industry organizations – such as EIC and CEA – will hold seminars and workshops as the year progresses) but rather just sharing some of my takeaways:

I’m glad I don’t work in Software/IT for lenders.

Lenders are still finalizing their systems.

A lot happens on the lender’s side leading up to issuing a Loan Estimate (ever heard of a “non-linear borrower”? And how about “versioning”?).

It’s CRITICAL that there is early and ongoing communication between escrow/settlement and the lender. This means NOW – to know what they are planning, if they will produce the borrower’s Integrated Closing Disclosure, and how they expect to communicate and share information (numbers) with the settlement agent.

Not only must there be good, open communication between escrow/settlement and lender, but collaboration is critical too. Collaboration to make the process as easy, smooth and efficient as possible. Particularly in terms of sharing the disclosure data.

Bring agents into the discussion now. Communicate with the agents you work with. Share information about the upcoming industry changes, the new forms, and make sure they realize how the rule’s waiting periods, delivery and receipt timelines can impact the transaction and the timing of consummation and closing.

Consummation is the day the borrower is obligated to pay. Under California state law, that is the date of signing (loan documents). We know of course that in California this is very different than the “Closing” or “Recording” date. Important to note the rules regarding delivery and receipt are with respect to the consummation date.

The CD can be hand delivered, sent via courier/express mail, electronically sent (must comply with E-Sign requirements), or sent via U.S. Postal Service. Did you know there was a “Mailbox Rule”? If put in the mail, the CD is presumed received three business days after being placed in the mail.

The simultaneous policy issue rate concern is not going away. Borrower’s charge for the lender’s policy will still need to be shown at the full rate (not the discounted simultaneous issue rate), and then a debit/credit between the Seller and Borrower needs to be done to reflect the actual charge.

The effective date of August 1, 2015 is soon approaching. Lenders and escrow/settlement companies/operations must be engaged in timely, active and concrete discussion, planning, implementing, and upgrading of their processes and software now. If your vendor is not able to show you a working (not theoretical, virtual, vapor, power point or story board) software solution now, consider looking for another provider.

Happy to say RBJ Software is already updating clients with the Integrated Closing Disclosure! See it, use it, learn it, get comfortable with it – it’s the real deal!

Lexie and I shared the day with many familiar faces, including current clients and other industry associates. It is always great to take part in an informative, educational event with those we work with. When we discuss, digest, and more importantly, see if we all heard the same thing and came away with the same understanding.

Moderators and panelists included talent from ALTA, MBA, CFPB, CMBA, national underwriters, lenders, and other industry players. Nancy Silberberg, President of Altus Escrow, Inc. and 2015 President of Escrow Institute of California (EIC) was a panelist on Changing the Real Estate Transaction. Juliana Tu of Viva Escrow!, Inc., in San Marino (and 2015 Board member of EIC, CEA, AEA and past President of EASGV) was a panelist on The Rule’s Implications for Closing Settlement.

If you’re not a member of these industry groups, I strongly recommend you join. Just consider the caliber of knowledge and insight you’ll have the opportunity to hear from and connect with!


RBJ Software, Inc. is an independently owned company, providing software, services and solutions to the Escrow/Settlement industry since 1984. RBJ has successfully completed a SSAE 16 SOC 1, Type 1 and Type 2 audit.