As October 3rd came and went, baseline Consumer Financial Protection Bureau (CFPB) compliance is on the mind of practically every mortgage professional–and with good reason considering the penalties. Aaron King, founder and CEO of Snapdocs examines how technological advances can help alleviate some of the added pressures from the CFPB's TILA-RESPA Integrated Disclosure (TRID) rule.
For some companies, making the necessary process adjustments to meet the bare minimum ‘Know Before You Owe’ requirements has become the priority. For others, the October 3rd deadline has become a catalyst to embrace new technology and renew focus on consumer experience, while ensuring compliance at the same time.
This industry-wide scrum begs an interesting question: if TRID wasn’t even brought forth, would there still be similar competition within the mortgage space for leadership in consumer experience?
Nearly every consumer-facing vertical has undergone a consumer experience revolution in the past decade. Whether it is shopping for a home on Zillow, hailing a ride from UBER, or finding and booking a reservation on Yelp, the company that reinvents the consumer experience rises to the top. And it’s all made possible by world-class execution, modern technology, and innovation.
"Pivoting away from legacy tools and processes is a daunting task, but making it a priority to seek out the right technology partners will pay off in the long run."
Granted, the mortgage industry isn’t without innovation. Lender models are rapidly changing, and new progressive brands are emerging to facilitate nationwide loan closings. But these new models (as well as traditional models) often require mobile closings, which open up another can of regulatory worms. A mobile closing carried out by a notary or a signing agent has many moving parts, which exposes the lender to compliance risk and increases the likelihood of a poor consumer experience. Luckily, B2B technology is evolving just as rapidly as these new business models to make compliance a breeze.
Snapdocs, for example, puts a premium on building modern, intuitive tools for mobile loan closings that give consumers the experience they’ve come to expect. The byproducts of embracing smartly-designed B2B technology for any aspect of the mortgage process is both CFPB compliance and providing an unparalleled consumer experience. After Snapdocs met those objectives, compliance features were baked into the platform. Prioritizing innovation and design while being mindful of the mortgage industry’s needs forged easy-to-use tools with a technology platform that takes away the headache of ensuring federal regulations are followed.
So for companies that are struggling to comply with CFPB regulations: hang in there–and embrace new technology as a lifeline. When the October 3rd smoke clears and you’ve met all regulatory demands, take a step back and see if you’ve satisfied your own personal standards for a reinvented consumer experience. Pivoting away from legacy tools and processes is a daunting task, but making it a priority to seek out the right technology partners will pay off in the long run.
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