From TRID to HMDA: Changes and Implementation

Jul 19, 2016 Aathira Nair

The mortgage industry is finally recovering from the TRID firestorm, where originators were dismayed with average time to close being 50 days. Profits were sinking like a big giant boulder recording as much as 60% reduction. Mortgage originators are now once again experiencing some positive headwinds.  The average Time to Close is within a respectable range and profits are on the rise again, leading to many sighing breaths of much deserved relief but wait…  here comes HMDA.

The CFPB which now over sees HMDA and CRA has changes that will significantly impact the Mortgage Industry again. We are left wondering, how will these changes affect the industry, will profits fall again, will the implementation be even more painful than TRID?

Thankfully, we have well over 18 months to implement these changes. However, we’ve heard this before during the times of TRID, and many underestimated the time and effort it took to create, test and implement TRID. In the end the industry suffered disastrously, because we just weren’t ready for the complexities of TRID and its effects on the industry and learned a painful but valuable lesson. Unlike the TRID implementation, a much more experienced industry is now preparing for the HMDA changes.

Nalashaa creates and implements reporting solutions that allow users to generate HMDA and other regulatory reports. Our available 2016 HMDA reports are current, complete and accurate. The reports would be generated based on the business logic and identified data sets. These reports are then integrated with loan origination, back office, customer self service and other enterprise and mobile platforms.

As we continue to face changes and uncertainty in our industry, Nalashaa is focused on staying one step ahead. We are committed to meeting the needs of our customers and not have a repeat TRID performance. Therefore, it is vitally important to have systems in place that can collect the new HMDA data points well in advance of the January 1, 2018 implementation.

Know more about our Mortgage Tech Solutions.

Aathira Nair

An engineer by education, foraying into a medley of activities - content, social media and marketing.

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