MortgageFlex Unveils System Upgrade for TRID

July 2, 2015

MortgageFlex Systems Inc., a provider of enterprise level loan origination technology, released a new version of the LoanQuest loan origination system to support implementation of the TILA-RESPA Integrated Disclosures (TRID) rule.

Superficially, TRID seems to be a release of two new forms. It is actually a significant change in mortgage lending methodology to disclose and close a loan, causing all lenders to redesign existing processes, according to Craig Bechtle, chief operating officer of MortgageFlex Systems.

“Being and staying compliant with regulators, investors, and agency requirements is our primary responsibility as a loan origination system (LOS) provider, Bechtle said. “The TRID changes prescribed by the CFPB represent some of the most far-reaching changes we have ever seen in this industry.

Recent industry publications stated that “that some origination software systems are only supporting TRID compliant LE and CD …” leaving lenders to handle pre-TRID deadline loans any way they could. Bechtle said this is not surprising since supporting two versions can prove challenging but for enterprise level system vendors it is a crucial effort that must be taken.

In a release, MortgageFlex said it chose to maintain pre-TRID functions to preserve all of its customers’ existing system functionality, while developing new Loan Estimate and Closing Disclosure forms. The LOS vendor decided that while the established method for preparing consumer disclosures resembled the new design, the data, and the new process did not fit cleanly in the existing methodology. The company opted not to force the new requirements into the existing data structures or interface components.

“We created 43 new screens, modified numerous existing screens and third-party integrations, and added 80-plus new calculations,” Bechtle continued. “The real impact occurred in the database. We added 22 new tables and 466 new columns, in addition to the 8 modified tables with 18 new columns. While it was an immense effort, it was worth it to have TRID specific functions that are clear, intuitive, and easily trainable.”

Tools were developed to allow customers to convert their existing fees and setup parameters to the new formats prescribed by the regulation so they could easily translate from the existing fee structure to the new Loan Estimate and Closing Disclosure.

Any change of this magnitude requires a tremendous amount of vendor support, according to Bechtle.  Most lenders build their own integrations to internal systems and need vendor assistance to adapt to database changes.  Vendor documentation and technology support sessions designed to help the customer’s developers understand a new database design are a requirement. A close vendor-lender relationship gives the customer one-on-one support that can jump-start their development efforts.

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