MORTGAGE GUIDELINES: TRID & MARKETING

Transcription

1 MORTGAGE GUIDELINES: TRID & MARKETING DON T LET TRID DETERMINE YOUR LEVEL OF SUCCESS SEPTEMBER 10, 2015

2 Agenda CFPB FTC FCC National Credit Reporting Agencies Regulations Agencies TRID TILA RESPA FCRA Dodd Frank Wall Street Reform Consumer Financial Protection Act

3 What is the FTC? Federal Trade Commission Independent Agency of US Government 1914: Established by Federal Trade Commission Act Investigates & prevents deceptive trade practices (false advertising) 1990s: Fraud sweep of telemarketing agencies

4 What is the FCC? Federal Communications Commission Independent Agency of US Government 1934: Established by Communications Commission Act Regulates interstate communications by radio, TV, wire, satellite, telecom, & cable (protection of consumer privacy) Funded by regulatory fees 1996: Telecommunications Act loosening the rules of the Communications Act 2006: FTC faced scrutiny NSA wire taping.

5 What is the FCRA? Federal Credit Reporting Act 1970: US Federal Law for consumer credit rights Creditors must report complete & accurate information to credit reporting agencies Negative information may only be kept for 7 yrs. 2003: Fair & Accurate Credit Transactions Act consumers entitled to one free credit report/yr.

6 What is TILA? Truth in Lending Act 1968: US Federal Law Promote informed use of consumer credit Requires uniform disclosure of fees Does not regulate the fees

7 What is RESPA? Real Estate Settlement Procedures Act 1974: Passed by US Congress Created to stop kickbacks between builders, lenders, realtors & lending companies Requires clear statement of fees due to promote competition & drive prices down

8 CFPB Credit Cards Mortgages Student Loans Most Pressing Concerns

9 CFPB IMPACT ON: FCC, FTC, FCRA, TILA, RESPA, AND NOW TRID July 2011 January 2012 November 2012 November 2014 March 2015 October 2015 TILA & RESPA MOU FTC & CFPB FCC FTC & CFPB TRID Authority transferred to CFPB Streamline Regulatory Efforts Regulation N $10M Fine Coordinate efforts 3 Day Rule

10 Similarities: FCC, FTC, FCRA FCRA FTC FCC All formed under US Government Enacted to protect consumers from fraudulent & predatory business & marketing practices All funded by US Government Work same way in their regulation: Someone must complain for anything to be done

11 Dodd Frank Wall Street Reform Consumer Protection Act Housed in the Federal Reserve New standards Protect consumers from predatory lending Fining companies out of compliance Image Source:

12 Integrated Disclosures Dodd-Frank Reform required TILA & RESPA to integrate their disclosures Prior Forms Required by TILA Prior Forms Required by RESPA Integrated Disclosure Required by TILA- RESPA Rule Application Initial TILA GFE Loan Estimate Closing Final TILA Loan Estimate Closing Disclosure

13 What is TRID? The purpose of TRID is to assure consumers obtain the necessary information needed when signing lending documents Image Source:

14 Rules & Regulations. A Process For Protecting Consumer Data Image Source: FCRA, TCPA, TILA, RESPA, & TRID Ignorance doesn t hold up in court Tech company security processes not disclosed Government working on laws requiring disclosure of all processes of securing data

15 Generate More Business Use your tools to generate more business Market and generate new business You have access to specific information to target consumers

16 Credit Data Must lend money to consumers in order to use credit data Rules & regulations: to ensure consumers don t receive offers they don t quality for Lenders therefore market to people who are pre-qualified Image Source:

17 3 Day Rule 3 Day Rule Lending Estimates Document Signing Lock in Rate for Borrower Lose Business Decrease in Loyalty Rates Change Constantly

18 Credit Data & Qualified Borrowers Credit Data Use for marketing efforts Has strict guidelines Guidelines match TRID Ensure borrowers qualify Image Source:

19 The Marketer s Job Image Source: Keep you, the lender, aware of what s available to you Acquire more business Compliant Marketing Firm Help you stay compliant with your guidelines Help you hit your growth goals

20 Pre-Qualified Borrowers Loan Amount Revolving Debt Amount Income LTV Loan Origination Date Credit Score Credit to Debt Ratio

21 Personalized your Marketing using Credit Data Pre-Qualified Borrowers Personalize your campaigns Not Wasting Everyone s Time Shows You Care Instilling Trust & Loyalty Acquire More Business Stay in Compliance Marketing is Compliant Compliance with Own Guidelines Hitting Growth Goals Image Source:

22 Use TRID and Credit Data to Help you Build your Business QUESTIONS TAGQUEST Caleb Guillory