Clarification of Major Changes—Integrated Mortgage Disclosures

Integrated-Mortgage-Disclosures_mobile-slider-280x300A new white paper from PYA investigates recent and upcoming changes to the mortgage industry via the integration of mortgage disclosures, hence the creation of the Loan Estimate and the Closing Disclosures. The paper details the ins-and-outs of these disclosures, as well as provides key suggestions for creditors and title companies regarding how to accommodate these imminent changes.

In a newly released white paper, “Clarification of Major Changes—Integrated Mortgage Disclosures,” PYA explores how the Consumer Financial Protection Bureau’s (CFPB) implementation of a highly anticipated Dodd-Frank provision is changing the ebb and flow of the mortgage industry and what this change means for financial institutions and title companies. The white paper highlights major changes related to the integration of mortgage disclosures and provides definitions for the newly created Loan Estimate disclosure and Closing Disclosure, explaining how they work, when to use them, and what is included on each.

The white paper provides a concise view of these required disclosures which become effective August 1, 2015, and offers an assessment of their impact on the mortgage industry landscape.

The paper also offers guidance for creditors and title/settlement companies in anticipating these disclosures. According to the paper, “In preparation for the [CFPB] Rule becoming effective, creditors and title/settlement companies should coordinate with software vendors to ensure compliance will be achieved with the new disclosure requirements. Testing should be conducted to verify that information is accurately disclosed. In addition, financial institutions should evaluate lending processes in light of the regulatory changes.”

PYA works with creditors and title/settlement companies to assure regulatory compliance with the CFPB ruling will be achieved. PYA has assisted a number of financial institutions with developing and implementing robust risk-based compliance programs.

Download White Paper Here

Tired of Confusing Requirements for Vendor Due Diligence from Lenders? ALTA Has a Solution for Your Organization

TItle-Industry_mobile-slider-280x300A new white paper from PYA explores the growing response of the lending and title communities to the American Land Title Association’s (ALTA) Best Practices Framework, and how title company vendors can take advantage of certification to demonstrate compliance while distinguishing themselves from others in the industry.

In a new white paper, PYA details the rise of the ALTA Best Practices Framework and how it has changed the regulatory landscape for title insurance companies. The paper also designates key reasons why PYA is a leading provider for ALTA Best Practices pre-assessment, assessment, and certification.

In “Tired of Confusing Requirements for Vendor Due Diligence from Lenders? ALTA Has a Solution for Your Organization,” PYA delves into the benefits of ALTA Best Practices Certification from the title industry’s perspective. The paper provides an outline of the seven ALTA Best Practices “pillars” and offers an overview of ALTA Best Practices assessment procedures. It further breaks down how title company vendors can seek ALTA Best Practices Certification—including key steps for title companies—and demonstrates why certification is important to a title company.

As stated in the paper, “Lenders are becoming more focused on the risk they assume by conducting business with various title companies. This focus has the potential for increasing lenders’ scrutiny of title companies, especially by those lenders who allow the closing professional to prepare loan disclosures. By obtaining a Best Practices Certification, a title company may recognize multiple benefits.”

Download White Paper Here

White Paper: ALTA Best Practices Ensure Compliant Real Estate Settlement Experience

ALTA_graphic-3-e1398190345904With the recent amendments to Regulation X (the Real Estate Settlement Procedures Act) becoming effective in January 2014, there has been increased regulatory pressure on banks and mortgage lenders to protect their customers’ non-public, personal information especially in the context of their relationships with third-party vendors, which includes title companies.

In response, the American Land Title Association (ALTA)—the title industry’s national trade association since 1907—stepped in to help its members and the title industry as a whole in 2013 by establishing a best practices framework to assist lenders in satisfying their responsibility to manage third-party vendors. These best practices are voluntary and designed to help title companies convey to customers and clients that they are meeting the industry’s minimum set of controls over their operations to ensure a positive and compliant real estate settlement experience. On March 6, 2014, Wells Fargo gave its support of ALTA’s Best Practices in its Settlement Agent Communications Newsletter.

Beyond just the establishment of a set of best practices, ALTA has proposed that title companies obtain certification. This involves an independent third party “certifying” that:

  1. The title company has adequately documented policies and procedures over operations.
  2. The policies and procedures cover all of the best practices.
  3. The title company is following its written policies and procedures.

ALTA has not specifically addressed who the independent third party should be. Discussions have focused around who has the ability to certify, are they truly independent, and would their certification be accepted by the lenders. This opens the door for CPA firms because they meet all of ALTA’s expectations.

PYA has produced a white paper, American Land Title Association (ALTA): Best Practices Framework Certification, which outlines the ALTA Best Practices framework, assessment procedures, and certification package details.  It offers steps your organization can take to make sure it’s compliant with ALTA’s Best Practices, including participation in a pre-assessment and/or full assessment.

Download White Paper Here

If you would like more information about ALTA Best Practices or title company certification, contact Mike Shamblin at PYA, (800) 270-9629.