No Delayed Enforcement Period Planned For TRID Implementation
Despite hopes to the contrary, the CFPB is unlikely to grant a delayed enforcement period when it comes to TRID implementation and compliance. That means there will not be a grace period for lenders and settlement agents to ease into the new regulations and become familiar with the changes incrementally. All lenders and settlement agents must be ready to fully comply with TRID on October 3, 2015. Anyone not following the guidelines and using the new forms faces fines and penalties immediately. Since TRID has zero margin for error and the requirements are so stringent, this lack of grace period has many agents worried.
Don’t Count On A Legislative Reprieve Since TRID was announced, Congress has been carefully watching the implementation prep work and acting as an advocate for lenders and agents. Currently, there are two bills in Congress that would protect settlement agents and lenders from mistakes made under TRID. Under these bills, regulations would not be enforced until January 1, 2016 as long as the preparers made a good faith attempt to comply with the requirements. Both bills are currently in committee and could find new life at any time, but don’t get your hopes up for a legislative reprieve. The bills would have to make it through both houses of Congress and be signed into law by the President, which is unlikely to happen.
Easy Soft Is Here To Help The CFPB has stated that they will be sensitive to good faith efforts to comply with the new requirements, but that does not provide a 100% guarantee that mistakes will be tolerated. With so much on the line, settlement attorneys cannot afford to risk these transactions and hope for the best if they make a mistake. Settlement agents are responsible for preparing the Closing Disclosure to the Buyer and the Closing Disclosure to the Seller. Even though lenders are responsible for ensuring the accuracy of these forms, settlement attorneys and closing agents can’t risk submitting incomplete or incorrect forms and still hope to do business with these same lenders.
Rest easy. Easy Soft can help. Our EasyRealEstate Suite of real estate closing software has everything you need to manage a closing from start to finish. Of particular assistance on October 3rd will be EasyCDF, our newest addition to the Suite that provides you with the new Closing Disclosure Forms. Also with the Suite, you’ll receive Easy HUD, which has all of the HUD forms you’ll need to continue to use for certain types of transactions. The entire Suite has been designed to be practically error-proof and in full compliance with the new TRID requirements. Even if you have never managed a real estate closing before, you will be able to with the Suite. Forms auto-populate and draw data from a central database, which drastically cuts down on both the amount of time spent filling in the forms and the chance of errors that come with manual data entry. You will be walked through all of the forms and documentation requirements necessary for a closing so you’ll never miss a step, and a built-in task list feature ensures you meet all timing requirements and deadlines.
You can even file 1099-S forms electronically on the day of the closing. There has never been an easier way to manage a real estate closing in-house! To learn more about EasyCDF, Easy HUD and the EasyRealEstate Suite, contact Easy Soft today at 1-800-905-7638. October 3rd is almost here; download the software today!