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.
While this may sound like it makes things more confusing, that’s not the intention. The two forms will eliminate duplicate data entry, should cut down on confusion among buyers and sellers as they make it easier to locate key information, and will save real estate attorneys the burden of having to go over several separate forms to explain their similarities and differences to consumers. The new TILA-RESPA rule also changes how the forms should be filled out and used.
Will You Be In Compliance?
Sounds great, right? Fewer forms, less data entry, less confusion…where do I sign up? Well, if you’re a current Easysoft customer, you don’t have anything to worry about your TRID compliance because all of our subscribers will receive an automatic update to their Easy HUD software. This update will bring them into compliance with the new rules, right down to handling the submission of documents to the IRS and lenders.
If you’re not an Easy HUD user, things are a little more challenging. Depending on how you complete the forms – manually or with PDF, for example – you may have to change the way you do things. Manual and PDF entries won’t work with the new forms.
If you rely on a different software vendor for real estate closing documents, you’ll need to discuss with them their plans for the new rules. Some vendors may decide to put out an update that you’ll need to manually add to your existing software. Others may replace the old software with a new, fully compliant product, but a good number of them are simply washing their hands of the whole thing, deeming the new procedures too complex to warrant changing their software. If this is what your vendor is planning to do, then come August 1, any form you submit will be out of compliance with the new TILA-RESPA procedures.
Easysoft Makes It Easy To Meet Compliance Changes
While there’s a chance the old HUD documents will be accepted for a few months after the August deadline, you’ll need to make the change eventually no matter what. Easysoft’s new fully compliant software, Easy CDF, will be launched in June; again, for existing customers, there’s no need to do anything – your current Easy HUD software will automatically be updated and you are assured of 100% compliance. For new customers, there’s plenty of time to make the change to Easysoft and familiarize yourself with the software well before the August deadline, so that you’re fully ready when the change goes into effect.