MORTGAGE GUIDELINES: TRID & MARKETING DON’T LET TRID DETERMINE YOUR LEVEL OF SUCCESS SEPTEMBER 10, 2015

Agenda

Age

ncie

s CFPB

FTC

FCC

National Credit Reporting Agencies Re

gula

tions

TRID

TILA

RESPA

FCRA

Dodd Frank Wall Street Reform

Consumer Financial Protection Act

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

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.

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.

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

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

CFPB

Most Pressing Concerns

Student Loans

Mortgages

Credit Cards

CFPB IMPACT ON: FCC, FTC, FCRA, TILA, RESPA, AND NOW TRID

July 2011

TILA & RESPA

Authority transferred to CFPB

January 2012

MOU

Streamline Regulatory Efforts

November 2012

FTC & CFPB

Regulation N

November 2014

FCC

$10M Fine

March 2015

FTC & CFPB

Coordinate efforts

October 2015

TRID

3 Day Rule

Similarities: FCC, FTC, FCRA

FCC

FTC

FCRA

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

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: www.thedailyjournalist.com

Integrated 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

Dodd-Frank Reform required TILA & RESPA to integrate their disclosures

What is TRID?

The purpose of TRID is to assure consumers obtain the necessary information needed when signing lending documents

Image Source: www.thetruthaboutmortgage.com

Rules & Regulations. A Process For Protecting Consumer Data

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

Image Source: www.um.edu.mt

Generate More Business

Use your tools to generate

more business

You have access to specific

information to target

consumers

Market and generate

new business

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: www.perc.net

3 Day Rule

3 D

ay R

ule

Lend

ing

Estim

ates

Doc

umen

t Sig

ning

Lock

in R

ate

for

Borro

wer

Lose

Bus

ines

s

Dec

reas

e in

Loy

alty

Rate

s Cha

nge

Con

stan

tly

Credit Data & Qualified Borrowers

Credit Data • Use for marketing

efforts • Has strict guidelines • Guidelines match

TRID • Ensure borrowers

qualify

Image Source: www.mortgagebattlecall.com

The Marketer’s Job 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

Image Source: www.realestatemarketingblob.org

Pre-Qualified Borrowers

Loan Amount

Revolving Debt

Amount Income LTV

Loan Origination

Date Credit Score

Credit to Debt Ratio

Personalized your Marketing using Credit Data

Image Source: www.chicagorealestatedude.com

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

QUESTIONS TAGQUEST Caleb Guillory 866-376-5540 www.tagquest.com

Use TRID and Credit Data to Help you Build your Business