Lenders to lead the way in new closing process

Once TRID takes effect in August, everyone will answer to the lender, top bank executives say

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On Aug. 1, lenders will resume responsibility for the actions of all parties at the closing table — but that doesn’t mean lenders will prepare consumer disclosures and loan documents in a vacuum. That's what a panel of executives from some of the nation’s largest banks told members of the American Land Title Association last month when discussing the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) rule, which will take effect Aug. 1. At ALTA’s Business Strategies Conference, held March 18-20 in Philadelphia, the lender executives said after digesting the CFPB’s 1,888-page TRID rule and all of its accompanying regulations, they could not get comfortable with delegating certain responsibilities to title and settlement agents. Released by the CFPB in November 2013 as part of its “Know Before You Owe” initiative, TRID consolidates four existing disclosures currently required by TILA and RESPA into two forms: a Closing Disclosure t...