TILA-RESPA Integrated Disclosure Rule (TRID)

As you know, Cenlar has been preparing for the implementation of the TILA-RESPA Integrated Disclosure Rule (TRID) and is on track to be fully compliant as of the required implementation date of October 3, 2015.

Below is a summary of our progress in the various Business Units as it relates to TRID:

Loan Estimate/ Special Products:

• The Loan Estimate replaces the initial TIL and GFE
• Internally impacts assumptions and loan modifications

  Implementation status: Sample forms available as of 7/6/15.  Special Products testing is ongoing; Compliance testing scheduled for this week; and applicable P&P’s are being updated.

Closing Disclosure/ Special Products:

• Closing Disclosure replaces the final TIL/ HUD 1
• Internally impacts assumptions and loan modifications

  Implementation status:  Sample forms are available as of 7/6/15.  Special Products testing is ongoing; Compliance testing will begin by 9/8/15; P&P’s are being updated.

Escrow Closing Notice/ Research:

• The Escrow Closing Notice is a new notice
• Model form provided in rule
• Notice is required to be provided no later than 3 business days before escrow account is closed.
• Notice will be sent starting 10/3/15
• Escrow account closure is based on state, investor and client direction

  Implementation status:  Escrow Closing Notice is automated as of 8/13/15 and ready for use, click here for copy of notice.  P&P’s are complete and were approved by Compliance on 9/2/15.

Home Loan Toolkit/ Special Products:

• Home Loan Toolkit (booklet) replaces the RESPA Settlement booklet when the TILA-RESPA Integrated Disclosures go into effect
• Sent no later than 3 business days after receiving the consumer loan application
• Booklet is to be printed directly from the website (www.consumerfinance.gov/learnmore) to ensure most recent version is provided.

  Implementation status: Special Products has confirmed a start date of 10/3/15 for the new booklet. P&P’s are being updated.

Partial Payment Policy disclosure requirements/ Special Products, Servicing Systems, New Loans, Transfer Services, Client Relations:

• The Closing Disclosure includes a section for the partial payment policy
• Partial Payment policy must now be included in the Transfer of Ownership letters (404 notice)
• Policy disclosure needs to align with client policy.

  Implementation status:  Partial payment policy requirements were reviewed by Compliance. Cenlar recommends that clients choose the second option (“may hold them in a separate account until you pay the rest of the payment and then apply the full payment to your loan”) on their forms as the CFPB has indicated that this selection provides the most flexibility. Based on limited options for disclosure of how Cenlar may treat the receipt of a partial payment under different circumstances, Cenlar will add language to our RESPA servicing transfer letters, non-RESPA “Hello” letters, monthly statements/ coupon books, as well as 404 letters.  Language was reviewed and approved on 8/10/15. Impacted areas were notified and determination of the work effort required was made on 8/21/15.  Letters are currently under review by Compliance.

  Partial Payment Policy language to be added to Hello letters, monthly statements/ coupon books, as well as 404 letters:
  The disposition of a partial payment received may depend on a number of factors including but not limited to: the amount of the partial payment, whether your loan is delinquent, the investor of your loan, whether your loan contains an escrow feature, the number of times a partial payment was received within a 12 month period, whether your loan is being or has been modified.  For any or all of these reasons, a partial payment may be (1) returned to you, (2) applied to your loan, (3) accepted but held in a non-interest bearing unapplied funds account for a period of time until you send us additional fund sufficient to equal a full periodic payment due.

Record Retention Requirements/ Special Products, Records, Transfer Operations:

• Retain copies of the Closing Disclosure (and all documents related to the Closing Disclosure) for five years after consummation.
• If a creditor sells, transfers, or otherwise disposes of its interest in a mortgage and does not service the mortgage, the creditor shall provide a copy of the Closing Disclosure to the new owner or servicer of the mortgage as a part of the transfer of the loan file.
• Both the creditor and such owner or servicer shall retain the Closing Disclosure for the remainder of the five-year period.

  Implementation status:  Retention requirements have been communicated to the Transfer Operations manager.  Request for documents will be added to the Implementation checklist; retention and housing requirements will be discussed with Records.