With the new TILA-RESPA Integrated Disclosure (TRID) rules scheduled to take effect Oct. 3, credit unions are feeling anxious.
Although it seems simple in concept, TRID is fairly complex in its implementation. At its core is the reduction and compression of the number of required mortgage disclosures to just two: the Loan Estimate and the Closing Estimate. However, because TRID applies to most consumer mortgages and provides strict timelines for providing borrowers with the key documents, this reform affects every aspect of the way credit unions conduct their mortgage lending businesses.
Mortgage insurance (MI) is a key component of home finance and is subject to TRID rules on disclosure. For credit unions, it’s yet another focus of worry as they try to comply with the new regulations, close loans, and keep customers and regulators satisfied with their turnaround times.
Help Available Online
There’s a resource easily available to credit unions that provides step-by-step expert guidance on the treatment of MI under TRID. Arch MI for Credit Unions has posted the TRID Information Center on its website at https://micu.archcapgroup.com/tridEZ. There you’ll find a suite of materials to address typical questions regarding tolerances for MI, “permitted changes” and scenarios that might trigger a re-issue of the Loan Estimate or Closing Estimate.
Arch MI’s TRID Information Center is accurate and thorough. The site features a complimentary webinar led by a former Assistant Deputy Director of the Consumer Financial Protection Bureau, Benjamin K. Olson, who helped develop the new rules. Now a partner at the Buckley Sandler law firm, Olson offers valuable guidance on the treatment of MI premium under TRID. A companion Q&A reviews in detail the most common questions about TRID and examines how various MI premium plans might or might not require a reissue of the disclosures under certain conditions.
The available resources also include a set of flowcharts that clearly explain, using “yes” and “no” questions, each step involved in disclosing MI under TRID.
Reach Out To Realtors As A TRID Expert
Arch MI’s TRID Information Center recently posted a new item for loan originators called the Readiness Roadmap. Recognizing that TRID expertise is valuable not only to credit unions but to their real estate partners, Arch has collaborated with Morf Media Inc., to produce a toolkit that enables CUs to train realtors on TRID.
The Roadmap empowers a credit union to initiate, strengthen and leverage their relationship with real estate agents, who play a central role in shaping their clients’ mortgage decision. The toolkit is virtually “turn-key” in that it provides everything credit unions need to set up a TRID training session and invite their target audience, including:
A webinar that explains how to become a “TRID Expert” to the community
A downloadable presentation on the key points of TRID
A presentation on TRID implementation
Sample emails to send to local realtors, inviting them to attend
A list of useful TRID tips
“TRID is the dominant issue for credit unions at this time, as many are apprehensive about its impact on their mortgage lending operations,” said Richard Izen, Arch MI’s EVP of Sales and Marketing. “Supporting our credit union partners is a priority for Arch, so we wanted to create a TRID resource that specifically addresses their practical concerns about disclosing MI, using recommendations from an expert. Once they’re confident in their learning, the Roadmap positions them to become the TRID expert for key partners in the mortgage process – the realtors.”
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