It may not be good grammar but it makes the point. When I travel, I often wonder who gets the flights that depart from gates 1, 2 or 3 at the airport. For some reason, it seems I always end up leaving from a gate at the very end of the terminal.
Ironically, when returning from our recent LoanLogics Users Conference, I noticed that my connecting flight due to depart from Atlanta to return to Philly was scheduled to leave from gate A3. Alleluia!
But wait, my flight coming into Atlanta arrived at gate A29. You guessed it. At the other end of the terminal, and if you ever been to the Atlanta airport, you know the terminals are a mile long. Be careful what you wish for…
At our User’s Conference, we were fortunate and honored to have Loerena Nimon, Quality Analyst, with the CFPB, participate on our TRID presentation panel.
In this presentation, we discussed the intent and effects of the new TRID rules. BTW, CFPB does not recognize ‘TRID’; it’s known as “Know Before You Owe” (KBYO). The acronym ain’t quite the same.
Loerena made it clear that the intent of KBYO was not to penalize lenders but rather to protect and educate the consumer. She went on to highlight the things CFPB has done to assist consumers, lenders, and other stakeholders to that end. She said, more than once, that she had come as much to listen and to take back to CFPB the concerns, questions, and suggestions from the attendees. CFPB wants to help.
For years, Lenders have made it quite clear to anyone who would listen that they are the lending professionals. They know the business of financing the American Dream. It is a unique and complicated process and one not easily understood. We are the pros as we know our business.
CFPB listened. In creating the new rules, CFPB made the lender the lead dog. Lenders are now the party responsible for educating and protecting the consumer; that being the borrower. Who better to ensure the consumer (borrower) gets a fair shake. After all, for the most part, the Seller is represented by the Realtor, with the closing agent/attorney representing the interests of the title insurer.
So, now it seems that lenders got what they wished for; the opportunity to be in control the loan transaction. With that comes the responsibility to ensure things are done right to protect the consumer. Remember that is CFPB’s intent. They laid out the rules of the game and now it’s up to the lenders to follow them when doing what they do best; lend.
Luckily, there will be an opportunity to clarify and modify some of the rules under the announced Notice of Proposed Rulemaking coming in July. For lenders, it’s time to get involved. Make your voices heard. CFPB has finally acknowledged the challenges created by TRID and wants to work with lenders, and other interested parties, to improve the process. Speak now…
It’s nice to be the lead dog, the view is always changing. However, you must be prepared to head in the right direction. Be careful of short cuts. These usually get you lost or lead to dead ends. Set your destination, plot the route, be prepared for changes, but stay the course.
Under the “Know Before You Owe” rules, we got our wish, the lender is the lead dog; no ifs, and’s or buts…are you prepared?