Measuring TRID Risk for Lenders

Lenders, like bankers working in other parts of the financial services industry, are expert risk managers. Many of the conversations we have with our clients and prospects focus on ways to reduce overall risk, especially when it comes to the CFPB’s TILA/RESPA Integrated Disclosure Rule (TRID).

Earlier this year, Sarah Wheeler, HousingWire managing editor, pointed out that TRID apathy is a serious lender risk, “it's easy for lenders to get a little lazy about TRID guidelines in particular because they haven't been judged on that set of rules yet,” she wrote.

Those audits are only beginning now, and we don’t really know yet exactly what regulators will be considering a compliance error and how they will chose to levy fines. One thing we do know is that they will be looking over the lender’s records for the past two years. In a couple of years, that could expose the institution to serious risk if they are making mistakes now.

Measuring this kind of risk is very difficult. We just can’t be sure what the downside will be for a lender that steps over the TRID line. But what lenders can do is make sure that they are complying with the law as they understand it and documenting their process.

Over the next few blog posts, we’ll talk about how we are helping lenders to do that and about some industry trends that could increase the lender’s overall TRID non-compliance risk.