New regulations can be costly to implement and can introduce new risks. Lenders put projects in place to make changes but move on when changes take effect and the projects end. However, it’s not how you solve the problem initially that pays off, success is often found in how you follow through.
Among these new regulations is the TILA-RESPA Integrated Disclosures Rule (TRID). This transformational rule has been an enormous and expensive undertaking and, as with anything new and of this magnitude, things don’t always go smoothly. So what should lenders do to manage risk and costs now that the TRID rule is in effect?
To answer this, Mike Jones, director in Navigant’s Financial Services practice, considers lessons learned from another transformational federal mandate: The Sarbanes-Oxley act. This article provides an overview of the challenges the mortgage industry is currently facing and compares it with the landscape for public companies after the Sarbanes-Oxley act. It illustrates how the Sarbanes-Oxley act impacted public companies and the reaction that ensued, providing context to consider when dealing with TRID.