Recognizing that title agents will need to dramatically adjust the way they work with lenders and other real estate partners after Aug. 1 — when the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) regulation takes effect — First American Title Insurance Co. is giving its affiliated agents a helping hand in the form of a toolkit with recommended preparation activities.
The three-step TRID Toolkit is available via First American’s agent portal, AgentNet, and provides a road map for agents to prepare for the operational, technology and compliance changes to come. Each of the three steps — “assess,” “act” and “grow” — are presented through a series of recommended activities designed to prepare First American’s agents to reach important milestones necessary to implement the TRID rule.
Part of the CFPB’s “Know Before You Owe” initiative, TRID consolidates four existing disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) into two forms: A Loan Estimate form that must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure form that must be provided to the consumer at least three business days prior to consummation.
The CFPB released the 1,800-page rule and its accompanying regulations in November 2013. The rule places liability for compliance on mortgage lenders, and this is expected to alter the relationships between lenders, title and settlement agents, escrow agents, real estate agents and other industry participants.
The TRID Toolkit suggests topics that title agents should discuss with their lenders, and includes specific questions to ask and guidelines on when to ask them. The TRID Toolkit will be periodically updated as the Aug. 1 implementation deadline approaches.
First American is also offering its title agents a comprehensive suite of TRID training and reference materials through AgentNet.
“Title agents that embrace the transition to TRID can build stronger relationships with their business sources and potentially enhance their position in the market,” said Lou Pontani, vice president of sales and marketing for First American’s Agency Division. “Our TRID Toolkit is one way we’re trying to help First American agents position themselves for growth.”