It’s a brave new world. Are YOU ready to lead the charge?
Securely ensconced in the title insurance happenings of 2016, it may seem untenable to dredge up the new-ish Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA integrated disclosure (TRID) forms that went into effect in October 2015. Surely, we’ve all “got it” by now. Right?
Wrong. The confusion rages on.
With the suggestion of the CFPB that “an owner’s title policy is ‘optional,’” confusion amongst lenders and realtors persist. How should realtors instruct their clients in regards to the necessity of title insurance? How should mortgage lenders advise wary buyers in the face of a seeming contradiction?
For title insurance professionals, this misunderstanding provides a unique opportunity to collaborate with lenders and realtors in emphasizing the value of title insurance; to engage all the lending partners in the essential conversation about the necessity of protecting a homeowner’s investment. The implementation of TRID does NOT have to cause a glitch. Instead, the new conversation facilitates a cooperation with each “leg” of the closing team, ensuring the most efficient outcome possible.
At the 2015 Business Strategies conference last year The American Land Title Association (ALTA) president Diane Evans “urged attendees to take the lead and start setting the expectations and having conversations with lenders and other partners on how they will collaborate to exchange information on the new TRID disclosure forms.”
So what do professionals in the title insurance industry need to share with their partners?
Perhaps most obvious, it cannot be overstated that title insurance may be the MOST critical step in protecting the buyer/seller’s investment. Moreover, it benefits all involved parties to maintain a continuity in the understanding of recent changes in the law.
The use of the GFE, HUD-1 and Truth in Lending forms will no longer be included in that huge mound of paperwork at the closing transaction. Instead, the streamlined version of those financial disclosures required by The Truth in Lending Act (TILA) and The Real Estate Settlement Procedure Act (RESPA) will consolidate the forms into two:
- Loan Estimate: The Loan Estimate is a new form that goes into effect on October 3, 2015. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan
- Closing Disclosure: is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).
In the title insurance industry, let’s not miss this timely opportunity to accumulate, integrate and disseminate new information and LEAD our lending and real estate partners in providing the most efficient and effective solutions for our customers.
