IDAHO FALLS, Idaho--(BUSINESS WIRE)--Under the initial deadline for rolling out the new integrated disclosures, lenders would have been going live this week with the new forms and regulations required by changes to the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). With the deadline pushed to October 3, lenders are using the extra time primarily to focus on training and using new technology systems, according to a survey conducted by DocuTech™, a leading provider of document and compliance services for financial institutions.
Overall, 85% of the lenders responding to the survey indicated that the delay was beneficial. When asked to expand on how the extra two months will help lenders, the most common response involved more time to train staff and test the technology needed to ensure compliance.
“Our customers have told us the delay will allow them more time to test and correct system issues and ensure all documents are printing correctly,” said Scott K. Stucky, Chief Strategy Officer at DocuTech. “These are brand new documents and the changes require a great deal of process changes in addition to programming from us and our partners.”
Preparation involves many moving parts that require the coordination of document providers, loan origination software providers and settlement services providers. DocuTech provided its clients and partners access to the documents in February of this year, with a full test environment release in the spring for users to complete testing and preparations.
Lenders also responded that the delay will help them to better serve their customers.
“A common theme we keep hearing is that rolling out the new forms during the industry’s busiest season would have delayed consumer financing and created hardships for their borrowers,” Stucky said. “The delay gives lenders the time needed to further develop the systems they’ll be using to support the new processes with their business partners.”
About DocuTech Corp.
Founded in 1991, Idaho Falls, Idaho-based DocuTech™ Corp. (DocuTech) provides a web-based solution that dynamically creates document packages based on the information from the lender’s loan origination platform. Recognized as one of the most innovative technology companies by multiple media outlets, DocuTech's software supports fully compliant eDelivery and Print Fulfillment services, along with robust eSignature services and tamper-proof audit trails. For more information visit the company's website at www.docutechcorp.com or follow them on social media at LinkedIn or Twitter @docutech.