One of the biggest challenges presented by the Consumer Financial Protection Bureau's (CFPB) new TILA-RESPA Integrated Disclosures (TRID) rule is the timely exchange of information between lenders and their settlement services providers just prior to the closing.
Moving forward, the best way to quickly handle this exchange, and meet the required timelines, will be through automation. However, a recent survey conducted by e-document technology provider eLynx finds that only 6% of lenders have a fully automated process in place for collecting property-related data from their settlement service providers (SSPs) and populating the forms.
As a result, most lenders will be relying on manual processes – at least in part – for collecting property-related data from SSPs. This, in turn, makes it all the more likely that one of these lenders will have a ‘snag’ in complying with the new TRID rules.
The reason many lenders will not be able to automate this part of the process right away, the firm says, is due to a lack of integration between the title production system and the system creating the closing disclosure
eLynx says it is planning integrations with the major title production systems. But the problem is that most lenders work with multiple SSPs and thus will not have an automated solution for every settlement services provider. For now, many of these lenders will rely on manual data entry, which is prone to error and risk.
As an alternative solution to the problem, eLynx offers an automated data extraction service which enables SSPs to upload property and fee information to eLynx in document form so eLynx can extract the data to be used in the closing disclosure.
‘eLynx's data extraction service eliminates the need for lenders to reenter data from their settlement service providers' documents,’ says Sharon Matthews, president and CEO of eLynx, in a release. ‘They can completely bypass the part of their workflow that presents the highest risk for error.’
‘If the settlement services provider can generate a closing disclosure in a PDF format, eLynx can extract the data and transfer it to the eLynx Electronic Closing Network, eCN,’ she adds. ‘From there, the lender can combine it with loan-specific information from their loan origination system, compare it to previous disclosures and create the closing disclosure.’Â
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