0
0
The other day, I wrote about the TRID panel I moderated at our recent inaugural LoanLogics’ User’s Conference at the Sawgrass Marriott in Florida.
During that presentation, Noerena Limon, Quality Analyst with the CFPB, mentioned, on more than one occasion, the importance of consumer education and what CFPB expects from a lender and is doing to help. I mentioned that this could be something that CFPB may look for from a lender when coming for a friendly review.
A lender can demonstrate its efforts to educate and protect the consumer in the mortgage lending process. That will go a long way to reinforced CFPB’s determination a lender should make a good faith effort toward TRID compliance. The more a lender can demonstrate their efforts to educate and protect the consumer, the better things may go during a CFPB audit.
I believe an educated consumer is a lender’s best borrower. Educating the borrower on the lending process, including what to expect from application to closing, about their fees, costs and the closing, will help to alleviate confusion and questions while helping to reduce delays and defects. This will get the loan to the closing table quicker and satisfy the needs and wants of the consumer and their Realtor. Better quality loans and better customer service to everybody.
The challenge is how to go about educating the consumer. Sure we have a myriad of required disclosures, and more, all intended for this purpose but does anyone understand these disclosures, or do lenders take the time to explain them thoroughly? Not really. Would be nice if these disclosures could speak for themselves. Kind of like those talking novels that you can listen to in the car or while relaxing at the beach. Just sit back, relax and listen.
The other member of our TRID panel, George Baker, presented just such a solution; talking documents. Well, not really talking disclosures, but a process whereby the disclosures, and other information provided to a borrower, can be presented AND explained in detail, verbally, online. It’s called Talk’uments.
Talk’uments is a way to not only deliver all the required loan disclosures and related information but present it so the borrower may hear what the documents have to say. It assists a lender in complying with the letter of the law while educating the consumer so as to also meet the spirit of the law. Kill two birds with one stone, so to speak (No birds were harmed in the writing of this blog, nor when using Talk’uments).
BTW, this system can be integrated with the LoanLogics LoanHD platform to provide the capability to perform pre-closing loan reviews to ensure compliance with all required disclosures, their timing, and content, including, but not limited to, the new Loan Estimate and Closing Disclosure.
Not a bad idea. A new way to handle required loan disclosures while also educating the consumer on their content and the lending process. The proverbial win, win, win…
Check it out (Talk’uments). You’ll find it interesting and informative. Remember, the game has changed. Play different.
