ORLANDO – Credit unions preparing for changes in federal regulations that oversee truth-in-lending and real estate settlement rules on August 1, 2015 should check with vendors to ensure their changes will mesh with the credit union's, a compliance officer for Mortgage Builder said.
Melissa Kozicki, director of compliance for Mortgage Builder, urged executives attending NACUSO's 2015 conference to work with vendors to make sure that credit union staff understands the changes that loan origination systems will include. The organization held its conference at Disneyworld's Yacht Club resort in Orlando, Florida.
"I'm an LOS," Kozicki said. "I can write the best software around, but if your staff doesn't understand what it implements and why, you are not going to get the most you could out of it."
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Kozicki and Amanda Smith, partner at the credit union law firm of Messick and Lauer, PC, walked attendees through the complicated timing and disclosure requirements regarding when credit unions would need to deliver necessary estimates and disclosures in order to still close loans on time.
"Do not underestimate this," Kozicki said. "You need to start training staff now and start processing applications through the old system and the new, so that you can get a feel for how long it will take to process applications under the new system."
Kozicki described how her firm had taken the new TILA and RESPA forms to Kinkos, had them blown up, and hung them on walls along with a calendar. That way, her staff could start calculating when, under the new rules, they will need to send applicants the correct disclosures and estimates.
"It's so easy to read the regulation and think, 'Oh I got this,' but then when you start doing real-world examples, it gets really hard," she said.
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