TRID Challenges

In the News

Presented by Prairie Title            

Commentary by Frank Pellegrini, Prairie Title CEO  

November 18, 2015

I just returned from the National Association of Realtors Annual Convention where much of the talk was centered on prospects for the future, marketing to millennials and cybersecurity. I was invited to make a presentation to convention attendees about progress in implementing our new closing process in the TRID era. As I told the audience, we are experiencing broad differences in preparedness and processing, and refinance transactions have proceeded more smoothly than purchases. Challenges we have encountered include:

·         Loans through the Veterans Administration are made more complex due to the required allocation of credits and charges between buyers and sellers.

·         Implications of the notice period and having all the transactional details from all parties on time.

·         Calculating and agreeing upon the disclosure amount for title insurance in accordance with the formula prescribed in the Rule.

·         Accessing the “mid-ware” platform for uploading and downloading collaborative information with lenders.

By the time the traditional home-buying season is in full swing we’ll all be much better versed in the new lending and closing process, and transactions ought to be proceeding more smoothly for consumers and industry professionals alike. We’ll keep marching toward that goal.

Meanwhile, on the cybersecurity front, one of the NAR forums focused on how small real estate businesses, agents and their clients are fast becoming the targets of sophisticated cyber scammers. Melanie Wyne, NAR technology policy expert said that while we often hear in the news about large companies falling victim to hackers, small businesses, which often lack the vast technology and legal teams of larger businesses, actually account for the majority of attacks.

As we and our vendors continue to update our software and systems for the new closing environment, being extra vigilant about securing the information consumers entrust to us is more critical than ever.

Let’s keep the discussion going. Call or email me, or write a comment below.

 

Other stories we’re following:  

• Title SNAFUs and You.
• First Time Buyers 29 percent in September.
• Home Purchases Predicted to Rise in ’16
• Last Fed Rate Hike? Before the iPhone.

Government by (Default)

In Washington last week there was a changing of the guard in the U.S. House. As one Speaker departed and another took his place, simultaneous action occurred to keep the nation from defaulting on its prior obligations and sidetrack the endless, nauseating budget debate that has been going on for years in our nation’s capital. Feel how you will about the process and the outcome, but at the very least a budget framework is in place and our legislators can move onto other matters (such as the TRID grace period passed in the House and pending in the Senate?).

To an extent, change was the catalyst that made something happen in Washington. What will be the catalyst for action in Illinois? For months now our legislature and governor have been at loggerheads over the state budget and that is having real impact on people’s lives and the business climate. The stalemate in Springfield was ushered in by change in the form of the election of pro-business Governor Bruce Rauner, and it is highly unlikely that any of the main combatants will be leaving the scene voluntarily as former Speaker John Boehner did.

So where does that leave us, the taxpayers of Illinois? What action on whose part can bring about a resolution?

Legislative leaders and the governor are scheduled to meet this week for the first time in quite a while. Perhaps further talks will move them closer to a resolution. Until some undetermined pressure point is reached, however, it seems unlikely that an agreement will happen. Fiscal pressure might be the key at some point in time, but in my view pressure bubbling up from below, from those of us who go to the polls every two years, is the most likely change agent that will pave the way for a breakthrough.

For my friends on the Democratic side of the email, that means contacting your legislators and the leadership of both houses to stress the need to compromise and reach agreement soon. For my Republican friends, you’re not off the hook. Contact Gov. Rauner, absolutely, but also make it clear to Republican legislators that they need to help convince the governor that reaching a budget agreement is vital.

Of course, just like in Washington, most parties will not be delighted by many of the details of any budget agreement, but that’s how government in a democracy works. We need to move forward before Illinois becomes even more of a laughingstock nationally.

I urge all to be active, get in your legislator’s ear, and help create momentum to move toward resolution. Until the next round of elections a year from now, our only recourse is to contact legislators and the governor directly to clamor for an agreement. We are the agent for change. 

An easy and effective way to have your voice heard is through the Title Action Network.  You can join TAN in seconds and it costs nothing.  However, through TAN your voice is added to those of other concerned professionals for a strong and clear message to lawmakers, regulators, and policy makers.