UCD requirements coming soon…

Both Fannie Mae and Freddie Mac (GSE’s) announced that the Uniform Closing Dataset (UCD) file will be required for all borrower data for all loans purchased by a GSE with a Note Date on or after September 25, 2017.  While this is a lender requirement, a lender may request that the settlement agent provide an electronic data file containing the closing disclosure information (CDF).

What is UCD?

The UCD is an industry dataset that allows information on the CFPB’s Closing Disclosure Form to be communicated electronically to the GSE’s.  It was created to increase loan quality and provide consistency through data standards on all loans that a GSE purchases.

What does this mean for you? 

The UCD data file contains information from the Closing Disclosure Form (CDF) along with other data that the Lender has in their production system.  While the lender will send the actual UCD file to the GSE’s, they may request a separate data file from settlement agents containing the CDF information.  You may create this file by using the CDF Export feature in SoftPro 360.  Upon receipt of this file, the Lender can merge the information with their existing LOS data to produce the required UCD file.

To activate the CDF Export feature, contact SoftPro Sales at 800-848-0143, Option 1 or Sales@SoftProCorp.com.

Posted in Fannie, Freddie Mac, GSE, MISMO, UCD | Leave a comment

The new CFPB amendments and how they affect your SoftPro software

As you may know, the Consumer Financial Protection Bureau (CFPB) recently finalized updates to its “Know Before You Owe” mortgage disclosure rule on July 7. For a full summary of the final amendments from the CFPB, click here.

While the amendments are not intended to address major policy decisions to the original rule, there are changes that could affect SoftPro users. Some upcoming SoftPro software enhancements, related to the CFPB amendments, include:

  1. Providing an option to have a consumer (any person who has interest in the security interest, but may not be a borrower) sign the Closing Disclosure Form (CDF)
  2. Ensuring all versions of the CDF print $0.00 on line F.03 when interim interest is not collected at closing
  3. Updating the amounts shown in the Calculating Cash to Close table on Page 3 to move the Existing Liens amount into the Down Payment/Funds from Borrower or Funds for Borrower calculation instead of the Adjustments and Other Credits calculation
  4. Allowing Mortgage Insurance, which is being escrowed, to be included in the Escrow Account section on Page 4.

The final rule will become effective 60 days from the date it is published in the Federal Registry, and compliance will be mandatory on October 1, 2018. More information on when the final rule is published to the Federal Registry and enhancements to SoftPro products will be available soon.

Posted in CFPB, CFPB Hot Topics, TRID | Comments Off on The new CFPB amendments and how they affect your SoftPro software

CFPB TRID Amendments: what do they mean for the title and closing industry?

As many of you know, CFPB recently released amendments to its TRID rule.  While we would have preferred to see the CFPB address the owner’s title insurance calculations, not much changed from the proposal except the “optional” implementation date.

We think most title and closing software providers would agree that an “optional” implementation date is not helpful, in fact it only hurts us. One mandatory effective date, and no interim “effective date” would have been a much better option.  We need to be prepared to provide the changes to our customers once a lender starts requiring compliance with the amendments.  With an optional compliance date, various lenders can require settlement agents to provide updated documents, while other lenders, who wait to comply, will require the current documents.  Many software providers may have to scramble to provide a temporary solution for those lenders that decide to comply with the changes prior to October 1, 2018.  It will require a lot of work from settlement agents as well as software providers.

Whether or not October 1, 2018 date provides enough time to make the systems changes that are required for the new amendments is hard to say.  Right now, we are in the process of reviewing the final amendments, the impact of those changes on our products, and  a timeline required to make them to ensure our customers are compliant by the mandatory October 2018 date.

Do you have any questions or comments? Leave your feedback via the form below.

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The CFPB released the final TRID amendments intended to provide more clarity and preserve protections for consumers

On July 7, the Consumer Financial Protection Bureau (CFPB) finalized updates to its “Know Before You Owe” mortgage disclosure rule with amendments that are intended to formalize guidance in the rule, and provide greater clarity and certainty. The changes will facilitate implementation of the Know Before You Owe rule by the mortgage industry. The CFPB is also releasing a limited follow-up proposal to address an additional implementation issue.

“A mortgage is one of the largest financial decisions a consumer will ever make, and CFPB’s rules help ensure consumers have the easy-to-understand information they need before making a decision that will significantly impact their financial lives,” said CFPB Director Richard Cordray. “Our updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process for lenders and consumers.”

Read more

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NC is at the forefront of first-ever eClosing and plans to make it new standard in state

So exciting to see that North Carolina passed a major milestone in the housing finance industry this month, performing its first ever eClosing!

According to Housing Wire, the state, along with North State Bank and the help of other key parties, executed a 100% electronic mortgage closing. Investors Title Insurance Company of Chapel Hill insured the electronic, notarized mortgage, while DocMagic and World Wide Notary were the electronic solution providers that were used.

“This was our first North Carolina eClosing,” N.C. Secretary of State Elaine Marshall said, “It is not our last. We want this to become a regular option for lenders and their customers because of the many advantages eClosing offers versus the slower, traditional paper-based system.”

Tim Anderson, director of eServices with DocMagic, explained that the announcement is important since North State Bank plans to push this way as their default and not the exception.

Click to read the full article

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Did you know? Indiana joined states with predictable recording fees.

According to ALTA, Indiana became the latest state to enact legislation that enacts predictable recording fees, which helps facilitate fee accuracy and compliance with the TILA-RESPA Integrated Disclosures rule.

Gov. Eric Holcomb signed Senate Bill 505 on April 21. The legislation, which goes into effect July 1, sets a statutory fee for bulk form copies of 10 cents per copy of a recorded document and 10 cents per recorded document for a copy of the indices. It also allows a fee set by ordinance in an amount of up to 20 cents per copy and per recorded document if the county executive finds that the costs incurred by the county recorder exceed the amount of the statutory fee.

Adoption of flat recording fees help settlement agents provide more accurate recording fees upfront and help reduce lender liability if fees change substantially on the Closing Disclosure. Recording fees fall into the bucket of fees that can’t change more than 10 percent from the Loan Estimate to the Closing Disclosure.

Read more

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SoftPro® Wins Gold in 2017 American Business Awards

SoftPro® Wins Gold in 2017 American Business AwardsSM

We are so happy to announce that SoftPro was named the winner of Gold Stevie® Awards in both the Company of the Year – Real Estate and Customer Service Department of the Year categories in The 15th Annual American Business Awards!

The American Business Awards are the nation’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations – public and private, for-profit and non-profit, large and small. Nicknamed the Stevies for the Greek word meaning “crowned,” the awards will be presented to winners at a gala ceremony at the Marriott Marquis Hotel in New York on Tuesday, June 20.

SoftPro’s winning entries highlighted our Client Contact Initiative begun in 2016, which is tasked with gauging customer satisfaction and identification of client needs. Since its inception, our company has earned a 3.74 rating from its customers on a 1 – 4 scale with 4 being the best. In addition to our two Gold Stevies, we were also recognized with Silver in Corporate Social Responsibility Program of the Year and Most Innovative Tech Company of the Year.

Patrick Hempen, SoftPro Chief Customer Officer, said, “It is a great honor that our employees’ everyday commitment to make it about the customer has been recognized by the American Business Awards. I could not be more proud of our company as a whole, as well as our Support Team for their continued dedication to customer service.”

More than 3,600 nominations from organizations of all sizes and in virtually every industry were submitted this year for consideration in a wide range of categories; and more than 190 professionals worldwide participated in the judging process to select this year’s Stevie Award winners. Judges’ commented on SoftPro’s winning entries, “SoftPro is a shining example of customer loyalty driven growth” and ”You got me with ‘It’s all about the customer,’ which so few customer support organizations realize.”

“Each year the judges find the quality and variety of the nominations to be greater than the year before. The 2017 competition was intense, and every organization that has won should be proud,” said Michael Gallagher, president and founder of the Stevie Awards.

Details about The American Business Awards and the list of 2017 Stevie winners are available at www.StevieAwards.com/ABA.

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Did you know that CFPB proposes new changes to HMDA?

According to Housing Wire, the Consumer Financial Protection Bureau issued a much-asked-for proposal to clarify the 2015 updates to the Home Mortgage Disclosure Act rule, in order to help ensure industry compliance, according to the national regulator.

The bureau first released updates to HMDA in October 2015 to improve the quality and type of data reported by financial institutions, the CFPB claims.

From there, the CFPB gave the industry about three years to become compliant, with most of the updated requirements taking effect in January 2018.

And ever since the bureau issued the new HMDA final rule, the industry has been on high alert to come into compliance, even going so far as to say that HMDA is replacing TRID (the TILA-RESPA Integrated Disclosure rule) as the most dreaded mortgage acronym.

After public outreach and engagement, the CFPB stated that it identified opportunities to clarify parts of the 2015 HMDA Final Rule, which would help financial institutions comply.

Click here to read the full article in Housing Wire.

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Mortgage rates break holding pattern and drop…

While still higher than last year, mortgage rates have broken their holding pattern and dropped, according to Freddie Mac.

Click on link to read more Mortgage rates drop

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CFPB to defend constitutionality to full court

The CFPB appealed the October ruling in which a 3 judge panel ruled in favor of PHH.  The CFPB asked the court to rehear the case en banc, meaning the entire court would hear the case, rather than the three judges who initially presided over the case .

On February 16th the full court of appeals granted that request.  The CFPB will argue its constitutionality before the full court on May 24th. 2017.  By ruling in favor to rehear the case en banc, the ruling from October that declared the CFPB’s leadership structure unconstitutional is vacated.

To read more click the following link: CFPB Appeal

 

 

 

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