Now that they've finished updating their systems for compliance with the Consumer Financial Protection Bureau's (CFPB) ability-to-repay/qualified mortgage rules, mortgage technology vendors are ‘off to the races’ again, as they now must start revamping their systems for compliance with the CFPB's new Know Before You Owe rules and documents – also known as the Integrated Mortgage Disclosure Rule.
As such, Black Knight Financial Services has announced that two of its solutions are being updated to help its lender clients in meeting the new disclosure rules, which will go into effect Aug. 1, 2015.
Under the new rules, lenders will be required to provide home buyers seeking a mortgage with a Loan Estimate form within three days after application and a Closing Disclosure form three business days before closing on the loan. The new forms feature an updated format and include additional disclosure requirements from the Dodd-Frank Act.
Black Knight says its Closing Insight product, which enables electronic collaboration to meet closing requirements, and Quality Insight solution, which improves data quality, will be key in helping clients comply with the new rules.
‘The CFPB's new Integrated Mortgage Disclosure Rule will require a massive change in the way lenders generate loan origination documents and will impact every provider involved with the origination process,’ says Dan Sogorka, president of Black Knight's RealEC Technologies division, in a release. ‘These significant changes mean lenders need to start looking now at the impact of this rule to their organizations and begin planning immediately to meet the upcoming deadline.’
With Closing Insight, lenders can electronically collaborate with their service providers within one solution. The solution's collaborative closing services will facilitate the reconciliation of fees for final closing disclosures using a workflow-driven approval process to support data consistency and integrity. This process will also allow lenders to generate and review disclosure documents and refine fees, while helping ensure timelines are met (which is key because lenders will now have only three days in which to ensure that all data included in the forms is accurate – a concern of investors as well).
Functionality that will be added to Closing Insight includes the collection and aggregation of fee quotes, delivery of disclosures, and pre- and post-closing data consistency and integrity checks.
Closing Insight will be delivered through the RealEC Loan Quality Gateway, an open technology platform that provides integration, data management, decisioning and workflow management through a 24/7 data exchange connected to more than 15,000 of the mortgage industry's service and solution providers.
Meanwhile, Quality Insight will help lenders improve loan quality by assessing loan data and document accuracy to help ensure compliance with investor and lender requirements, Black Knight claims. Also delivered through the RealEC Loan Quality Gateway, the solution identifies potential investor and lender compliance issues early in the loan process, helping lenders gain processing efficiencies by automating the internal quality control review process.