Cognitive Options Group Launches “TRID Post-Consummation Variance & Changed Circumstance Audit” for the New Mortgage Disclosures That Take Effect October 3, 2015

CFPB new mortgage disclosures take effect on October 3, 2015, are your systems in place? Cognitive Options Group announces "TRID Solutions" that will provide dedicated support for clients and their partners.

Lakewood, CO, July 09, 2015 --( Cognitive Options Group, a national consulting firm specializing in Compliance and Due Diligence Reviews based in Lakewood, Colorado has announced that they are in the final stages of preparing for a host of TRID solutions to the financial services industry.

Professional lending operations must abide by the TILA-RESPA Integrated Disclosure Rule by October 3, 2015, according to the Consumer Financial Protection Bureau.

Creditors need to consider the advantages of a liability limiter, through using our “TRID Post Consummation-Due Diligence & Compliance Review” with enhanced comparing of final LE & final executed CD. This process is similar to the current RESPA disclosure rule, but harder to do under TRID because of rounding rules, alphabetization requirements, “flow through” impacts on “Cost to Close” and changes to tolerance rules (called “variations”).

For example TRID, compliance will be based on a comparison between the content of the LE and the final executed CD. If the borrower actually pays more (on the CD) than disclosed on the LE, the lender must refund the increased amount to the borrower and submit a new (revised) CD to the borrower and the timeframe is no later than 60 days after “consummation” (not necessarily closing).

Cognops TRID Post-Consummation Variance & Changed Circumstance Audit
Review will include:

- An inspection of the baseline LE and final executed CD to ensure they are on the proper forms and the forms are properly completed; including any variance and change circumstances.
- A comparative review of all the LE’s & CD’s disclosures for consistent non-monetary, non-numeric clerical text errors.
- An audit of the LE and CD delivery dates to confirm each disclosures was given in compliance within the prescribed regulatory deadlines.
- An analysis of the actual loan costs at closing, other costs, total other costs, total closing costs, calculation of cash to close, and summary of transactions charged to Consumer in comparison to the LE.
- An analysis includes the zero tolerance fees category that fail, and other fees to identify changes that fail the 10% tolerance.

During the analysis of the loan cost, Cognops will also determine if there is documentation that the creditor reviewed the CD for any inaccuracies and identify the last day the inaccuracy can be identified by the creditor.

Cognops will also determine if any inaccuracies were the result of a change in the amount paid by the consumer from what was disclosed on the baseline LE, confirm the refund to the consumer was the correct amount and forwarded to the consumer by the required timeline; determine the final date in which any refunds must be provided to the consumer.

Cognops will provide a report that identifies all fields reviewed as either pass or fail. Reports will include a root cause analysis of violations by loan officer, broker, vendor, and settlement agent.

In the early days of TRID, creditors need to decide the enhanced size of “TRID Post Consummation-Due Diligence & Compliance Review” sampling size, if not 100% of all loan files, as the stakes for legal liability (TILA violations) are high.

Civil money penalties: Fines under the new rule will swell as penalties are assessed “per day” rather than per infraction:

• Up to $5,000/day - Other violations
• Up to $25,000/day – “Reckless” Violations
• Up to $1 million/day – “Knowing” Violations

Because the Rule relies on statutory authority under TILA, as well as RESPA, many provisions of the Rule may be subject to the private right of action and to the assignee liability that exists under TILA.

About Cognitive Options Group, LLC.

Cognitive Options Group is based in Lakewood, CO and utilizes a variety of proprietary software tools to assist financial institutions determine if loans have been underwritten to compliance, risk tolerances, guideline and program requirements (Prime, Subprime, VA and FHA), and compliance with GSE, QM, TRID, federal, and state regulations. Cognitive Options Group also provides companies with operational, transactional, and professional compliance services.

We provide entire or specific outsourcing of risk management for our clients’ regulatory compliance function and its requirements. We provide a complete regulatory compliance program that includes risk assessments comprised of program development, implementation, and administration. We supplement our clients’ internal resources to discover, review and provide a Best Practices solutions to specific regulatory compliance issues. We serve as an independent assessor of mortgage compliance procedures, to identify challenges, and propose revisions to policy and procedures.

To facilitate our client’s success, we believe we must rigorously uphold our core values. We maintain these standards consistently so you can always trust that our teams are more than a collection of individual perspectives. They represent one mindset…that of Cognitive Options Group, LLC. For more information on Cognitive Options Group, LLC please visit or call (720-370-9090).
Cognitive Options Group LLC
Michael S Richardson
Mary Howard 720.370.9090 X302