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TRID Rules in Full Effect…Sort of


TILA-RESPA Integrated Disclosure (TRID) rule compliance is finally here. The companies in the mortgage industry now have no choice but to accept it and comply with it. Pramod Karachur, project manager at IndiSoft, outlines how many, but not all, are adjusting to the new regulation and offers advice to those that are still working toward compliance.

After delayed implementation, every lender has to be in compliance, ensure their business partners are in compliance, and that their technology is compliant as well. This is no short feat considering the number of lenders and vendors in the industry.

There are some good signs that the industry is well on the way to embracing TRID. A survey conducted last month by the National Association of Realtors of its more than 1 million members found that 75 percent of the title companies are compliant and 65 percent of the lenders are compliant with TRID. While these numbers are promising, it is still not 100 percent. At least the remaining companies that are not yet compliant are almost compliant otherwise they would have to face hefty fines from CFPB.

Pramod 2015 1

Pramod Karachur

"Once the storm of implementation has passed, companies will become familiar with TRID as with any other rule and, it will become just another rule to follow."

Companies that are not yet complaint yet can breathe a little easier. CFPB’s Director Richard Cordray said in a House Committee on Financial Services hearing on September 29, 2015, companies that have put forth a good faith effort to implement the TRID regulations will have “some period of months” to work out any problems. The CFPB is aware that companies may not be completely compliant as of day one of the TRID rules. This is a big relief for all companies, those already compliant and those closes to it. However, CFPB has not clearly said as how long it will be lenient with companies in the process of becoming compliant.

Like any new regulations, companies are somewhat overwhelmed in the effort to become completely TRID compliant by the deadline. This does not mean they are unwilling to comply, just bombarded with regulatory demands on top of the need to conduct business day to day to stay in business. Once the storm of implementation has passed, companies will become familiar with TRID as with any other rule and, it will become just another rule to follow.

Click here to learn more about IndiSoft.

About Author: Pramod Karachur

Pramod Karachur is project manager at IndiSoft, a technology company that specializes in systems for the financial industry. In his six years at IndiSoft, Karachur has implemented various grant programs, worked with multiple servicers such as Wells Fargo and Bank of America and thousands of non-profit and for-profit counseling agencies.

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