The Risks Of Non-Compliance With The Upcoming TRID Changes

Although you may not be looking forward to the upcoming TRID changes, the truth of the matter is, you can’t avoid them. Non-compliance is a risk to the real-estate deals you’re facilitating, your practice, your reputation, and comes with some stiff penalties.

Some compliance issues won’t change under TRID. Others will. Here’s a look at both and what to expect if you don’t comply with the requirements.

What Doesn’t Change

One rule that has been in effect since 2010 is RESPA Regulation X. Failure to comply with this rule could lead to partial or full remediation of funds to the borrowers. How well your firm was able to comply with Regulation X is a good indicator of how well you’ll fare under the new TRID changes.

Currently, there are five areas under TRID that could result in borrower remediation if compliance measures are not followed. Repercussions for non-compliance in these five areas don’t change, but could cost more. The five areas that put you at risk for non-compliance are:

1. being late with initial loan estimates,

2. providing inaccurate estimated fees,

3. failure to properly disclose changed fees,

4. changed circumstance disclosure timing, and

5. provision of the settlement services providers list

Now, chances are good that you’re already doing everything right to remain in compliance on these issues. So what you really have to worry about is what you’ll find in the section below.

What Does Change

Non-compliance in the five areas mentioned above will carry higher penalties once TRID goes into effect. Statutory and civil penalties and new rights for borrowers are the biggest changes, specifically:

  • Borrowers will have the right to claim actual damages, statutory damages, court costs, and attorney’s fees.
  • Statutory penalties can be as high as $4,000 if you don’t provide certain disclosures like the borrower’s interest rate and APR.
  • First Tier civil penalties levied by the CFPB of as much as $5,000, per day, per violation are now possible.
  • Second Tier civil penalties of up to $25,000 per day, per violation for reckless violations.
  • Third Tier civil penalties of up to $1 million per day, per violation for knowing violations.

Additional Costs

In addition to penalties and borrower remediation, there are other costs to consider:

  • Violations of the Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) rules could arise if there is failure to issue initial or subsequently required Loan Estimates in a timely fashion.
  • Investors can now be subject to the same claims brought against the creditor, in some cases. Not only are there monetary risks to these claims, they also damage investor reputations.

No Risk Of Non-Compliance With Easy Soft’s Real Estate Closing Software On Your Side

As intimidating as this all sounds, technology can help. Easy Soft’s Easy HUD real estate closing software is already being updated to comply with the 2015 TRID changes. Very soon we expect to roll out our new EasyCDF software, which will be 100% compliant with the changes, protecting your business from all of these non-compliance issues, fines, and penalties.

Rather than invest in more labor to make sure your paperwork is in perfect order, invest in technology solutions that streamline the closing process, ensure compliance with new rules and regulations, and improve productivity. EasyCDF is that solution.

Contact Easy Soft today at 1-800-905-7638 to learn more about our EasyCDF software and how we’re working to make sure you remain compliant with the upcoming TRID changes.

Posted by Amy Prokop on in HUD Software | Leave a comment

Easy Soft Is Ready For The TRID Changes – Are You?

TILA-RESPA changes are coming, there is no question about that. While there are some in our industry who have beseeched Congress to ask the CFPB to delay those changes from going into effect on August 1, that doesn’t change the fact that at some point the changes will happen.

Easy Soft Is Ready

Rather than wait it out, avoid it, delay it, hide from it, or deny it’s happening, Easy Soft has chosen to meet those changes head-on. We’re in the process of upgrading our current Easy HUD software so that it will be 100% compliant with TILA-RESPA on August 1. That’s right – It’s ready to go, right now. All we need is for the calendar to switch over to August 1.

Actually, you don’t even need to wait until August 1 to see this new software in action. Easy Soft will be releasing the update in June, providing you with plenty of time to get acquainted with the software well ahead of the August 1 deadline.

Change Doesn’t Have To Be Hard

It’s human nature to dig in our heels and resist change, even if the changes are for the best in the long run. Even if you have accepted the inevitability of the new TRID rules, you may be groaning in frustration and wondering how you’re going to achieve compliance. This is particularly true if you’ve been managing the forms manually, or if your current software vendor will not be updating your system.

Easy Soft is here to let you know that this change doesn’t have to be hard. In fact, it can be quite easy with the new EasyCDF closing software.

We’ve done the hard part for you by automatically integrating the 2015 changes into the software. All you have to do is fill in the blanks. Even better, you’ll fill in those blanks just once, instead of the multiple times you’re filling out the same information on different forms now. EasyCDF will automatically carry relevant data over to additional forms and even builds a contact database so everyone at your firm can share the same data instead of entering it by hand for every transaction.

Easy HUD and, soon, the new EasyCDF, improve productivity, reduce data entry errors, speed up closings, and ensure 100% compliance with federal rules and regulations. The software is available in cloud and desktop versions, allowing you to choose the best software solution for your team.

Early Subscriber Benefits

If improved productivity and a month to learn a new software program before you have to use it aren’t reason enough to make the switch to Easy Soft, how about a discounted price? Anyone who pre-orders the software before July 1 is guaranteed a price at current rates. After July 1, when demand increases, so will our prices.

Contact Easy Soft today at 1-800-905-7638 to lock in pre-order pricing and put your mind at ease about the coming TILA-RESPA changes.

Posted by Amy Prokop on in HUD Software | Comments Off

Is Your Software TRID Compliant?

On August 1, 2015, real estate closing procedures as we know them will change. That’s when new Closing Disbursement Forms courtesy of the Dodd-Frank Act and the CFPB will become mandatory for all real estate closings.

These new documents are called the Loan Estimate and the Closing Disclosure forms. They combine the overlapping data requirements of four of the current Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) forms, into two less confusing documents. Continue reading

Posted by Amy Prokop on in HUD Software | Comments Off

How Can I Ensure My Practice Is TILA-RESPA Compliant?

Everyone in the real estate industry is talking about the new closing regulations from the Consumer Financial Protection Bureau. One of the leading concerns is TILA-RESPA compliance. Real estate practices will have a greater compliance burden under the new regulations, but you can use TILA-RESPA software from Easy Soft to keep your practice from accidentally violating the rules.
Continue reading

Posted by Amy Prokop on in HUD Software | Comments Off

Where To Find Information On New Real Estate Laws

We are getting closer to the big changes coming to real estate closing as of August 1, 2015. As the date approaches, we at Easy Soft are updating our software to comply with the new laws. We’ve gotten lots of questions about the new rules and in many cases our answer is a frustrating “We don’t know at this point.”

What We Know And What We Don’t

Our real estate experts have looked over the new CFPB rules so we can understand how our current real estate closing software will have to change. The updated version of Easy HUD will be launched well in advance of the August 1 deadline to give you plenty of time to adjust to the new system. Continue reading

Posted by Amy Prokop on in HUD Software | Comments Off

Sharper Than A Serpent’s Tooth: Support For A Thankless Child

There is a lot of attention — rightfully so — on irresponsible parents who don’t pay child support. However there isn’t much discussion about the ungrateful child who not only doesn’t appreciate the parent making payments every month but is overtly abusive to the parent. There is often more to a post-divorce situation than can be reflected on the NY Statement of Net Worth. Is a parent obligated to keep making payments if the relationship is estranged?

Is A Child’s Attitude Relevant?

Many children don’t appreciate the sacrifices their parents make. It may be because they are too young to understand that money doesn’t simply appear as though by magic. It may be because they are going through those selfish teenage years. It may even be their parents have been so giving that the kids have become spoiled. However the more important question is: does the child’s attitude matter in child support negotiations? Continue reading

Posted by Amy Prokop on in NY Family Law Software | Comments Off