With the current climate in the title and mortgage industry, it takes more than just a right answer to be right. It takes the right answer backed by compliance work to show for it.
With the advent of TRID, title and settlement agents are considered service providers for lenders—or third parties. That means title/settlement companies not only need to ensure they are compliant with mortgage regulations, but also have the ability to prove their compliance. Those that do this will experience increased title production, because lenders will be more willing to partner with them.
A recent HousingWire article titled, “Transparency: the Ultimate Tool for Risk Mitigation” put it this way:
“Vendor management goes well beyond the vetting process. Remember, almost everyone looks good and says the right things during a job interview . . . It may be difficult to make a good first impression in the mortgage industry, but the very best of the best maintain that promise long after the business is awarded . . . [they are] as easy to manage and monitor as possible.”
So, how can title/settlement agents prove compliance and be as transparent as possible to lenders?
- Make sure your certifications and your background check is up to date—and that it comes from an independent third party.
- Record all actions and communications taken on all loan files, and have them in an audit-ready report should a regulator come calling on your company or the lender.
- Manage and monitor any vendors you work with and be sure they, in turn, have certifications, documentation, cybersecurity, audit-ready reports, etc.
ATS Secured automates the above processes, streamlines workflows and integrates with your existing software—making title and settlement agents attractive partners for lenders.