We’re still recovering from the whirlwind of meetings, sessions, and general conference shenanigans that come with attending MBA Annual in Boston.
As we reflect on our many conversations with lenders of all stripes, two takeaways come to mind:
- The 2017 GSE Uniform Closing Dataset (UCD) delivery requirement is a growing concern.
- Post closing errors related to trailing documents are an expensive thorn in the industry’s side.
We were surprised to learn that many lenders are still collaborating with settlement agents via phone and email to fulfill the TILA-RESPA Integrated Disclosure (TRID) requirements, even though the risk has dramatically shifted and timing is imperative. Can a manual collaboration process be sustained going forward? Especially with the upcoming UCD standardization to the MISMO 3.3 dataset, which means we are about to see another mad compliance scramble. Many of you foresee potentially longer loan turnaround times again, which is something the industry can’t afford.
Good collaboration technology should provide a systemic, auditable, and real-time process that is defensible and doesn’t require bodies to scale. With documents and communication all in one place, you’re reducing errors and miscommunication to speed up loan closings. Plus, if that solution is already based on the UCD and MISMO 3.3 standard, you’ll not only collaborate more efficiently, but in the correct data format to be delivered to Fannie Mae and Freddie Mac.
This is where Simplifile Collaboration comes in. Our collaboration portal keeps all your loan closing documents and communication in one place. Plus, while other vendors will be scrambling to upgrade for UCD compliance, our solution is already programmed on the MISMO 3.3.x data standard.
A more current pain point that’s slowing down the loan process is post-closing errors, especially relating to trailing documents. Due to the latest regulations, lenders are just as responsible for these errors as ones that occur earlier in the origination process. Many of these problems are due to manual procedures and human error. However, lenders have chosen to outsource personnel to manually track down trailing documents, costing time, money, and headaches.
The good news is that the GSEs have embraced e-recording and removed the paper requirements for the security instrument. That means an electronic, automated solution, like Simplifile Post Closing, can virtually eliminate post-closing problems by electronically tracking documents for all stakeholders as they go through recording. E-recorded documents, upon return from the county to Simplifile, are immediately, electronically delivered directly to the lender, bypassing the inefficient paper processes in place today.
Simplifile has been working closely and locally with settlement agents for over 16 years providing a technology backbone to move data, docs, and payments. Given the lender’s need to have a closer working relationship with agents now, and the issues with trailing docs and delivery, it’s a natural fit to extend our technology to help lenders work better with their agents. This includes providing the lender that much-needed post-closing visibility and secure UCD-compliant delivery.
One thing’s for sure, technology was a huge topic at this year’s MBA Annual and lenders seem ready to embrace it in 2017. We’d love to help you make the leap. Let's connect.