Wells Fargo Completes More Than 10,000 TRID Closings, Highlights Critical Areas

December 29, 2015

Wells Fargo has completed more than 10,000 using the TILA-RESPA Integrated Disclosures (TRID) since the rule went into effect, according to the lender’s latest newsletter to its settlement agents.

In the newsletter, Wells Fargo thanked its industry partners for preparing for the Consumer Financial Protection Bureau’s (CFPB) Know Before You Owe Rule (also known as TRID).

“The diligent efforts of settlement agents across the country played a huge role in this milestone,” according to Wells Fargo. “We have learned a great deal in these initial weeks. As we all anticipated, the changes were not implemented without some bumps, and we still have a lot to learn as we work together to smooth out new processes. We know that if we continue to partner and communicate during the upcoming weeks, we can work through these bumps before the traditional seasonal volumes increase.”

As the industry continues to adapt to new processes, Wells Fargo highlighted several areas that the lender believes are critical to completing the disclosures accurately and complying with the rule.

  • Use only the Wells Fargo provided and approved borrower Closing Disclosure: Wells Fargo said this is not negotiable for any loan closing with the lender. Wells Fargo said it has seen settlement agents provide their own Closing Disclosure to the borrowers. Settlement agents have also provided their version of the Closing Disclosure in addition to the one from Wells Fargo. “Neither practice is acceptable under any circumstances,” Wells wrote. Settlement agents are urged to use ALTA’s model settlement statements if additional documentation is needed.

  • Collaborate to provide actual fees for the borrower Closing Disclosure: Wells Fargo said it needs actual fees not estimated fees to complete the Closing Disclosure. “We understand that there will be circumstances when a fee legitimately changes after the borrower CD has been provided. If this occurs, all changes known prior to signing must be communicated to the Wells Fargo closer. The Wells Fargo closer is responsible to approve the change, determine if the change triggers a new three business day review period, and issue the updated CD if needed,” according to Wells Fargo.

  • Follow Wells Fargo instructions to disclose fees and credits: The lender said it is changing its approach for disclosing seller-paid fees to the prevalent approach followed in the industry. Wells Fargo said its method to disclose seller-paid amounts when the actual owner's policy premium differs from the premium disclosed on the Closing Disclosure causes confusion between the lender’s closers and settlement agents.

  • Settlement agent must provide seller Closing Disclosure: According to Wells Fargo, reviews of closed loans indicate that the seller Closing Disclosure was not provided to the lender. In some cases a seller-signed settlement statement was provided, and some include a signed HUD-1. “For purchase transactions, the Rule requires the settlement agent to create and provide the seller CD and to provide a copy to the lender. Wells Fargo's closing instructions require a copy of the seller CD be provided to us with the executed closing package. A settlement statement may be provided in addition to, but not in place of, the seller CD,” according to Wells.

Contact ALTA at 202-296-3671 or [email protected].