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Web-based financial services quality control (QC) software provider ACES Risk Management (ARMCO) has announced it has made improvements to its TRIDCompare tool to aid lenders in resolving TRID compliance issues regarding change of circumstance. Using Optical Character Recognition (OCR) technology with a 95 percent or better accuracy rate, the system automatically detects data discrepancies between multiple Loan Estimates (LEs) and Closing Disclosures (CDs), allowing lenders to pinpoint where change of circumstance has occurred to ensure the borrower was properly notified in accordance with the TRID requirements.
“We know the industry continues to struggle with TRID. Post-closing QC results from the ACES Analytics benchmarking system show defects in the Legal/Regulatory/Compliance category have nearly doubled since the implementation of TRID in Q4 2015,” said Phil McCall, COO for ARMCO. “Identifying changes of circumstance and errors for points and fees is a critical TRID QC activity and one that can add significant time to existing pre-funding and post-closing QC audits. Manual re-keying of data or ‘stare-and-compare’ tactics can take an hour or more per file to complete the complex comparisons required to properly QC these disclosures. With TRIDCompare 2.0, this process can be completed in as little as five minutes per file.”
In this latest version of TRIDCompare, ARMCO added more than 200 data fields to the data extraction and validation for the CD, providing auditors with the ability to conduct a more thorough review with a system-driven process. Other additions include building in tolerance levels for data fields to better identify data extraction errors and the use of color coding so that auditors can easily identify fields with errors and validate data within the document.
Disclosures are automatically organized in chronological order by the “Document Issued” date to provide an accurate representation of all changes. This system-driven process allows auditors to easily identify when changes of circumstance should have been provided and all fees associated with these changes. The user can then export TRIDCompare directly to Excel, which will provide a documented audit process that can be provided to senior management, investors, or regulators.
“What makes this latest iteration of TRIDCompare so great is its ability to automate a critical, yet labor-intensive QC function that can be used in a variety of areas and applications,” said Avi Naider, CEO for ARMCO. “On the pre-funding side, auditors can use TRIDCompare to prevent TRID violations and verify the accuracy of the data being presented to the borrower at closing. For post-closing, auditors can easily incorporate this review into their standard percentage audit to verify TRID compliance through closing. Even correspondent investors could leverage TRIDCompare to conduct a pre-purchase TRID compliance checks. The possibilities truly are endless.”