Ellie Mae reports that its Encompass loan origination system is now ready for the Consumer Financial Protection Bureau's (CFPB) Real Estate Settlement Procedures Act/Truth In Lending Act (RESPA-TILA) integrated disclosures rules taking effect on Aug. 1.
In addition, the company has rolled out new training programs for both the software and the rule changes as part of its ongoing RESPA-TILA Readiness Initiative.
‘RESPA-TILA is the single biggest regulatory change to affect our industry in years, but our clients will be more than ready,’ reports Jonathan Corr, president and CEO of Ellie Mae, in a release. ‘Thanks to our world-class development team, our deep bench of over 30 attorneys and compliance experts, and the help of our clients, we are months ahead of schedule. Ellie Mae is working hard to prepare our clients with not only new software solutions but with new resources and training as well, so they will be totally confident when Aug. 1 arrives. With such a major change coming, our customers deserve no less.’
Unlike other regulations imposed on lenders – such as the CFPB's ability-to-repay/qualified mortgage rules that were introduced in January 2014 – the new integrated disclosure rules have a ‘do-or-die’ compliance deadline of Aug. 1, meaning that all lenders, everywhere, must start using the new disclosure forms and have systems in place to ensure timely delivery of those disclosures to borrowers on that date. The new forms cannot be used ahead of that date; thus, lenders will have had little opportunity to test them out in a real-world scenario.
Ellie Mae says it has now added the needed functionality to its platform by way of a separate solution that helps facilitate the new disclosures process. This new solution facilitates the automation of workflows and the creation and management of disclosures.
Ellie Mae's platform also now sports enhancements that integrate evidence of compliance with disclosure timing and fee variance requirements.
In addition to updating its platform, the company is offering clients in-depth, hands-on, one-day training events to help them learn not only the changes to the software but also the rules themselves. These one-day events will be held in seven cities beginning in May and running through July, the company reports.
In addition, Ellie Mae is offering a series of online training modules that help clients learn about the new RESPA-TILA rules, as well as the related changes to the software. This allows clients to ingest the training at their own pace.
Ellie Mae has also rolled out its AllRegs RESPA-TILA Policy Manual & Readiness Kit. Developed by AllRegs by Ellie Mae, the kit will assist lenders on addressing necessary changes to their business practices as a result of the new disclosure rules.
‘There is a huge difference between creating new disclosure forms and integrating them seamlessly into a lender's workflow, which is what Ellie Mae has done,’ says Angela Cheek, vice president and counsel of product compliance for Ellie Mae. ‘Lenders that are relying on a separate system or vendor for disclosures could find the process disjointed and possibly non-compliant. As an all-in-one solution, however, Encompass does not have that problem.’