0
0
A Stratmore Group study released in March of this year reported that as the direct result of new TRID rules compliance costs increased $210 per loan. The report also indicated the increase was mainly attributable to an increase in staff.
So, why the need for more staff when an investment in technology might do the trick? The preparation of the required TRID disclosures can be automated through enhancements to an existing LOS. Many lenders have done so. Why haven’t more people made that change?
Lenders have hired additional people to double check their disclosures. This is done both before and after closing, and in a pre-delivery review. Why? Is it that they don’t trust their systems, or could it be they are not utilizing available resources to reduce expense? Your guess is as good as mine.
Targeted TRID compliance reviews may be outsourced and/or done in connection with standard required QC audits. Such reviews will help to identify problems in data entry, system programming, configuration, and mapping as well as plain old mistakes.
Aside from exploring all the new technology for increasing loan production and streamlining the application process, lender should also be looking at existing technology and resources to minimize the additional expense related to regulatory changes.
It may seem easy to throw people at the problem but that is not the best way to solve it. A smart investment in technology, coupled with targeted outsourcing of certain tasks, like audits, will pay big dividends.
It’s time to look at the big picture. Use technology, and other available resources, to reach more consumers, obtain more business, streamline operations and ensure the production of quality, compliant loans.
Quality will set you apart from the competition. Compliance will keep you there. The secret is in using the right technology, and technology partners, to keep you in the game.
