DS News

66 Default service law firms rely on title agencies to provide many services as they process files; as such it has become more common for them to have an affiliated REO Title Agency. e law firms have been experiencing an increase in regulatory requirements for several years. Now we see that increase in regulation on the title agency side as well. Last year brought many changes to the title industry with the inception of the TILA- RESPA Integrated Disclosure ("TRID") rule and the requirement for Best Practices. Title agencies spent much time in recent years developing and implementing the 7 pillars of the ALTA Best Practice Standards, as well as training on the new TRID guidelines. e Best Practices operate as a tool to assist title agencies in documenting their policies and procedures. Title companies have been subject to regulation at both the state and federal levels for decades. is regulatory activity has been spotty, inconsistent, controversial and occasionally overzealous. is current round of increased federal regulation on title activities is conscious, concerted and committed. It will help manage risk and protect reputation, but compliance requires time, effort and resources. e Title Industry, along with its lender and realtor colleagues, are adjusting to the new TRID rules that the Consumer Financial Protection Board ("CFPB") placed into effect on October 3, 2015. e purpose of TRID was to improve the way consumers received information about the mortgage loans at both the application stage and the closing stage. TRID required implementation of two new forms, the Loan Estimate and the Closing Disclosure ("CD"). e Loan Estimate is required to be delivered to the consumer three business days after their loan application. e CD is required to be received by the consumer three business days prior to the closing. e CD combines the HUD-1 Settlement Statement and the Final Truth-in- Lending disclosure and was designed to provide disclosures to consumers in an effort to boost understanding. e new rules caused a slow October for many title agencies. Lenders continued implementation of the necessary software upgrades required to accommodate the new CD form. e industry seemed to breathe a sigh of relief when the CFPB delayed the effective date of the CD forms approximately two months due to the technical difficulties the lenders were experiencing. e CFPB attributed the delay to a technical regulatory notification issue for the delay, but clearly the industry was not ready in August when they initially planned to launch. TRID regulations have extended loan-closing times by at least seven days, and it is prudent for everyone involved in a non-cash transaction to assume it will now take an additional 10 days to close a transaction. As with most title agencies, we required our staff to attend classes and webinars on the TRID rules and forms. Our closers work closely with Lenders on a CD worksheet to ensure the costs I N D U S T R Y I N S I G H T / L A W R E N C E Z I E L K E TACKLING Title professionals are well positioned to face the industry's challenges.

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