Banks Conducting Closings? Don’t Believe The Rumors You Hear

While you may have heard that banks and lenders are managing real estate closings and thus, taking clients and cash from real estate attorneys; the fact is, they are not. Banks and lenders have a vested interest in the property closing. They are not impartial participants and therefore not eligible to facilitate the closing.

Closings can physically take place at a bank, which could explain how the rumors about banks and lenders managing closings got started. But even if you are just refinancing your home loan, a closing agent must be the one to manage the process. Closing agents may be impartial real estate attorneys or title company representatives, not banks providing the loan.

Delivery of the Closing Disclosure Form

Most likely, the rumor about banks conducting closings centers around the decision by Bank of America and Wells Fargo to handle the production and delivery of the new Closing Disclosure Forms (CDF) come August 1. The reasons behind this have to do with the new 3-day deadline for delivery of the CDF.

Under the new TRID guidelines, the Closing Disclosure Form must be delivered to the borrower three days prior to the closing. If it isn’t, the entire sale is in jeopardy. Obviously, lenders want those closings to happen and have an extreme interest in making sure those forms get delivered on time and all other compliance regulations are met.

Taking over delivery of these closing forms gives lenders more control over the process and helps them remain in close contact with the settlement agent, ensuring all of the details and needs are met to make the closing happen. Lenders will now have much more compliance liability for transactions than they had in the past. The fines are severe and lenders cannot afford to make any mistakes. By taking over the delivery of the Closing Disclosure Forms, these banks are protecting their own interests, but they are not facilitating closings. They are merely handling a portion of the paperwork.

Real Estate Attorneys Can Ease Lenders’ Anxiety With EasyCDF

Easy Soft’s new 100% TRID compliant software, EasyCDF real estate closing software will ease lender anxiety about deadlines and due dates, data accuracy, and compliance issues. EasyCDF will eliminate the paper back and forth that is so common with current closing transactions. Our software supports the full implementation of the new disclosure requirements with its ability to exchange documents and data electronically, even the 1099-S. You will never miss a deadline, or a step, with EasyCDF.

Don’t let lenders take work away from you! Contact Easy Soft at 1-800-905-7638 to learn more about EasyCDF and maintain control over your real estate closings from start to finish.

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What Is There To Lose By Outsourcing To Title Companies? Plenty.

Real estate law firms sometimes outsource their closing work to title companies for the same reason any business outsources. It’s easier, it saves time, and it gets the job done. For smaller firms this is sometimes a necessity. If real estate closings are rare, then staff really may not have the technical know-how needed to facilitate a closing, and outsourcing is seen as the only option. Larger firms that outsource don’t have that same excuse. If real estate closings are a routine part of your business, you owe it to your clients to perform that work yourself.

The Downside Of Outsourcing

For as much time as it saves, outsourcing real estate closings usually comes with more cons than pros. For starters, real estate law firms are giving away money that they could be earning for themselves by doing the closings in-house, and they are opening themselves up to compliance violations for which they could be held liable.

Compromising Client Trust: Buying a house is the biggest financial commitment many people will make in their lives. They want to entrust the paperwork associated with this major purchase to someone they trust: their attorney. Their attorney is where people go for the most intensely personal events in their life. They trust their attorney and they want to know their attorney has responsibility for their file from end to end. Outsourcing their closing to an unfamiliar title company could shake their trust in the attorney or firm.

Outsourcing Is Expensive: In most cases, outsourcing does not make financial sense. Real estate attorneys who outsource their closings are missing out on lucrative fees that come with handling closings. Not only that, they have to pay the title company to do the work! Firms end up losing money on both the front and the back end, and small firms and solo practitioners can hardly afford this type of loss.

Compliance Issues:  Once the paperwork leaves your hands it is out of your control. You are placing your faith in the title company to do the job right and in compliance with all current laws. Non-compliant closings not only negate the sale, the fines for non-compliance can be astronomical and affect firms for years afterward.

Easy CDF Saves Time, Save Money, Ensures Compliance

The solution to the outsourcing dilemma is Easy CDF. Easy CDF works for all real estate firms, no matter how many closings are handled each year. It is a practical solution to managing closings in house, saving time and money, and allowing clients to stay with their attorney through the entire process.

The real estate closing software is 100% compliant with all of the most current federal real estate closing documentation requirements, including the new TRID requirements going into effect August 1, 2015, and it guides attorneys through the process step-by-step, ensuring no form is forgotten and no data is missed. Auto calculations and built-in compliance features make it practically impossible to make a mistake.

Easy CDF will improve your closing efficiency, ensure compliance, and help you keep the money you would normally pay to a title company within your firm. Easy Soft has a 30-year history of enabling efficiency for attorneys and now we are offering Easy CDF as yet another quality solution that allows solos and small law firms to quickly and easily complete complex work for their clients.

Contact Easy Soft at 1-800-905-7638 to learn more about Easy CDF and how it can change the way you handle real estate closings.

Posted by Amy Prokop on in HUD Software | Comments Off

Easy Soft Ensures Compliance With 2015 TRID Software

The biggest changes to TILA and RESPA documentation in decades take effect this August. That’s when the new Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rules take effect. These rules were set as part of the Dodd-Frank Act and are intended to simplify disclosures to real property consumers, helping them to better understand their mortgage transaction.

Worry-Free Compliance From Easy Soft

While this is great for consumers, it’s thrown the mortgage industry into a panic as lenders, realtors, brokers, and real estate attorneys scramble to develop new ways of facilitating property sales in compliance with the new requirements. One of the surest and simplest ways to ensure complete compliance on August 1 is to partner with Easy Soft.

Easy Soft is way ahead of the competition and has been putting the finishing touches on a new real estate closing software program over the course of the last year. The result is our new EasyCDF software, which will be available to consumers in June of this year. EasyCDF will be an upgrade from the current Easy HUD closing software to assure complete compliance with TRID. It will be available to new and current users in both desktop and cloud versions.

The Time To Plan For Compliance Is Now

If you’re waiting to hear back from your current vendor, haven’t heard a peep about TRID from your vendor, or have been managing the closing process manually, you need to act now to make sure your office will be compliant come August. The strict penalties for even minor TRID defects means you simply cannot afford NOT to be in compliance from Day One.

Easy Soft Has You Covered

At Easy Soft, we’ve already done all the hard work. EasyCDF is the perfect solution for automating your entire real estate closing process, particularly in light of the upcoming TRID changes. All of the closing documents you need are included in the software, including the new Closing Disclosure (CD) form. You can even add your own custom forms if necessary.

Another big change that is coming in August has to do with how quickly consumers are provided with their disclosure forms. Electronic forms and filing make it possible to make changes quickly and submit the documents to borrowers and lenders within the allotted time. You’ll be able to connect and communicate changes with each party collectively or individually, and track those communications in your EasyCDF software for future reference.

Easy Soft software will streamline your transactions, ensure compliance with all of the latest TILA, RESPA, TRID, and CFPB rules, reduce real estate closing time by up to 80%, and improve transaction accuracy. Even better, if you order your copy of EasyCDF before July 1 you’ll enjoy special early order pricing.

Easy Soft and EasyCDF have everything you need to meet the challenges of TRID head-on, with complete success. Contact Easy Soft today at 1-800-905-7638 to learn more about our EasyCDF software.

Posted by Amy Prokop on in HUD Software | Comments Off

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 | Comments Off

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