ComplianceEase [1], a provider of automated compliance solutions to the financial services industry, released a new technology solution to help lenders and settlement agents comply with the TILA-RESPA Integrated Disclosure [2](TRID) rule.
ClosingXchange [3] enables lenders and settlement agents to maintain communications and exchange data securely and seamlessly with regard to TRID.
“Even before the TRID rule took effect, RESPA and TILA-related issues were prevalent: for example, our data showed that 17 percent of loans failed for TILA and 6 percent for RESPA at the end of the first quarter of 2015,” said Jason Roth, Chief Technology Officer of ComplianceEase. “TRID has significantly increased the level of difficulty in terms of communications and collaboration between lenders and closing agents. The old way of delivering documents through different portals and communicating via insecure emails is now not only ineffective, but also susceptible to errors. ClosingXchange will allow lenders and settlement agents to truly partner with each other, monitoring compliance risk with the industry leading compliance tool, speeding up turn times, automating processes, and originating and closing loans that comply with TRID.”
According to ComplianceEase, the ClosingXchange solution:
- Reduces risks by flagging fee changes throughout the lifecycle of a transaction and analyzing the impact of those adjustments based on changed circumstances. The solution can identify fee tolerance variances with valid changed circumstances before loans close. It works with ComplianceAnalyzer with TRID Monitor, the company’s online compliance management platform for real-time, integrated, loan-level auditing including pre-close and post-consummation reviews.
- Uses Uniform Closing Dataset (UCD) XML data files as well as PDF documents to perform real-time analysis to reduce cycle time—eliminating manual “stare and compare” change detection.
- Reduces manual data entry with integrated data delivery and leverages existing settlement agent production software for producing closing statements and data, so there is no need for a separate document generation portal. It further streamlines the process by automating post-closing, final document delivery, and document tracking.
- Has an integrated file delivery system, so lenders and settlement agents can collaborate in a secure, real-time communications environment, instead of relying on insecure and outdated email, fax, phone, or courier services. This helps improve the quality and efficiency of the closing workflow while also protecting the security and privacy of borrowers’ non-public personal information.
- Maintains an audit log of all conversations, documents, status changes, approvals, scheduling of events, changes of circumstance, and delivery timing in a single objective record that can be accessed via a web browser.
ClosingXchange is being integrated with many settlement services software systems. Additionally, it can be integrated via web services into loan origination, document generation, and other systems, and has an easy-to-use user interface that requires minimal training.