The leading settlement software providers independently shared their varying views on new regulatory changes. Some expressed frustration and doubt about being able to meet regulatory needs while Qualia shared that it’s well positioned to easily adapt with no required work for its users.
The Consumer Financial Protection Bureau (CFPB) has updated its TRID rule, reflecting a changing landscape in legal requirements surrounding title insurance. The law will go into effect on Oct 1, 2018, but the CFPB has decided to leave it up to the lenders to decide whether or not to comply prior to this date.
The rule, expected by most, has been criticized for the scope and timing of the changes by a number of legacy desktop-based settlement software programs. This reflects a growing uneasiness from some of these legacy software companies that their older platforms will not be able to adapt for customers who decide to comply with the new changes in regulations that go into effect next year.
Pre-TRID Softwares Struggle to Adapt
In a recent exclusive interview by The Title Report, the Director of Regulatory Compliance for a widely used legacy settlement software expressed deep concern that the adoption period does not give them enough time to adjust to the current amendments.
Their concerns are that their software is likely unable to adapt fast enough for the regulatory changes.
Specifically, their Director voiced her frustration that, “[m]any software vendors may have to scramble to provide a temporary solution for those lenders that decide to comply with the changes prior to Oct. 1, 2018. It’s a lot of work on the settlement side of things as well as for software providers.”
Qualia is Designed for Today’s Market
Qualia CEO Nate Baker does not share their concern or frustration, however, and instead “anticipate[s] that most systems should be able to make the necessary changes on time, if not sooner.” Baker is confident that Qualia’s software will easily adapt to changing landscapes, regardless of what laws are passed. He points out that Qualia’s software, developed post-TRID, is specifically developed to adjust to any changes in regulation and that, unlike legacy systems, Qualia’s users will receive the required updates in time with no additional cost.
“Qualia’s users will certainly receive the updates in time. Qualia was purposefully designed after TRID to be able to adjust to changing legal landscapes (daily if need be) like no other settlement software on the market.”
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