Closing Disclosure

How to Stay Out of Closing Disclosure Limbo

Have you had problems closing TRID loans on time? The Ellie Mae Origination Insight Report says you may have. The average time it took to close a loan in December was a whopping 42 to 49 days. The Closing Disclosure (CD) three-day rule is one of the major reasons for this.

Lenders Must Issue the CD To the Borrower Three Days Before Closing.

If changes are made to the CD, then the three-day rule starts over again. And there’s of course a chance that changes could occur multiple times.

It reminds me of the movie Inception when they explain the concept of limbo:

Cobb: I just didn’t understand that hours could turn into years down there. That we could get trapped so deep that when we wound up on the shore of our own subconscious, we lost sight of what was real.

Ariadne: How long were you stuck there?

Cobb: Something like 50 years.

A bit dramatic, but you get the idea. The three-day rule can add a lot of time to the already complicated and time-consuming mortgage process.

The solution?

There’s an old productivity principle called the “touch it once” rule. Basically, it’s the concept of refusing to interrupt yourself from completing a task as soon as it is in your proverbial court.

Hear me out, procrastinators. (I’m talking to myself as much as you.)

Instead of scrolling through your emails and thinking, “I’ll respond later,” respond right away, thereby eliminating the need to go back and remember how you wanted to respond.

Whatever you’re doing, you should finish it before moving on to something else. Dr. Travis Bradberry, a LinkedIn Influencer and well-known author, put it this way: “Never put anything in a holding pattern, because touching things twice is a huge time waster. Don’t save an email or a phone call to deal with later. As soon as something gets your attention you should act on it, delegate it, or delete it.”

This may seem impossible to do when it comes to the CD’s three-day rule. If the CD needs to be revised, then you’re forced to wait three days in a “holding pattern” while the borrower reviews it. Your hands are tied. You’re in limbo.

Avoid Revising the Closing Disclosure In the First Place

But I’m not talking about applying the “touch it once” rule after the CD needs to be revised, but before. Once an error is found or something needs to be adjusted, it’s already too late. The “touch it once” rule works when you do things right from the beginning, instead of having to go back and get the information later. It’s about using the right data in the first place. It’s about being proactive instead of reactive.

That’s how you originate a clean TRID loan, and how you stay out of Closing Disclosure limbo. If you do a loan correctly from the beginning, and prove that you did it correctly, that’s job security.

“That’s a great little pipe dream you have going there,” you might say, “But it’s just not realistic. The mortgage process is too complex, there’s no way you can just start with the right data all the time.”

And you’d be right. The current mortgage process does not and cannot support what I just described.

That’s Why ATS Secured Is Revolutionizing the Mortgage Process.

ATS Secured’s mortgage software connects the borrower, lender, real estate agent, title agent and any other entity contributing to a loan file. Each of these individuals/companies have been verified and vetted, own and control who sees their data, and are able to keep it up to date in one place, ready to send to other entities (for instance, the lender), who need to see it.

In addition, the ATS Secured audit log tracks all communications and actions, helping to prove to regulators and/or mortgage investors that you did, in fact, do the right thing at the right time.

Don’t wait until you’re in Closing Disclosure limbo to start gathering the right information. Get an ATS Secured account and make your dreams about non-delayed, error-free TRID loans a reality.

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