TRID – More Than Just another Systems Update
Jacksonville, Florida (June 30, 2015) – MortgageFlex Systems, Inc., an innovative provider of enterprise level loan origination technology, released a new TRID supportive version in May of the LoanQuest loan origination system.
MortgageFlex offers solutions that meet customer’s needs now and post-TRID. Solutions that include integrations with the right partners, continuing version support, adequate training, information exchanges with industry experts, and last but certainly not least, input about what the customer wants in the system.
Superficially, TRID seems to be a release of two new forms. It is actually a significant change in mortgage lending methodology to disclose and close a loan, causing all lenders to redesign existing processes.
“Being and staying compliant with regulators, investors, and agency requirements is our primary responsibility as a loan origination system (LOS) provider. The TRID changes prescribed by the CFPB represent some of the most far-reaching changes we have ever seen in this industry,” said Craig Bechtle, chief operating officer, MortgageFlex Systems. “MortgageFlex TRID components have been in release since May and our customers were kept informed every step of the way via webinars, conference calls, and software demonstrations so they were aware of what we were doing and were well prepared to receive the updates.”
Recent industry publications stated that “that some origination software systems are only supporting TRID compliant LE and CD …” leaving lenders to handle pre-TRID deadline loans any way they could. This is not surprising since supporting two versions can prove challenging but for enterprise level system vendors it is a crucial effort that must be taken.
MortgageFlex chose to maintain pre-TRID functions to preserve all of their customer’s existing system functionality while developing new Loan Estimate and Closing Disclosure forms. The LOS vendor decided that while the established method for preparing consumer disclosures resembled the new design, the data, and the new process did not fit cleanly in the existing methodology. They opted not to force the new requirements into the existing data structures or interface components.
“We created 43 new screens, modified numerous existing screens and third-party integrations, and added 80+ new calculations,” Bechtle continued. “The real impact occurred in the database. We added 22 new tables and 466 new columns, in addition to the 8 modified tables with 18 new columns. While it was an immense effort, it was worth it to have TRID specific functions that are clear, intuitive, and easily trainable.”
Conversion tools were developed to allow customers to convert their existing fees and setup parameters to the new formats prescribed by the regulation so they could easily translate from the existing fee structure to the new Loan Estimate and Closing Disclosure.
Any change of this magnitude requires a tremendous amount of vendor support. Most lenders build their own integrations to internal systems and need vendor assistance to adapt to database changes. Vendor documentation and technology support sessions designed to help the customer’s developers understand a new database design are a requirement. A close vendor-lender relationship gives the customer one-on-one support that can jump-start their development efforts.
TRID changes cut deep into everyone’s infrastructure, but collaboration with customers and industry compliance experts have allowed MortgageFlex to construct an exhaustive set of functions to support the CFPB’s requirement.