Amanda Phillips, EVP Legal and Regulatory Compliance at Mortgage Cadence received the Women of Influence 2016 recognition for guiding Mortgage Cadence through the largest regulation change in 30 years.
In preparation for the TRID effective date last fall, Amanda Phillips led Mortgage Cadence’s product and compliance teams that reviewed the final TILA-RESPA Integrated Disclosure Rule and drafted requirements on system enhancements. Over 14 months prior to the TRID effective date, Phillips traveled to Washington, D.C. to meet with the CFPB leaders and discuss the new rule first hand. Throughout this process, Phillips worked with outside legal counsel, MBA, and MISMO, participated in CFPB roundtables and webinars, and met with other advisors in the industry to validate the company’s proposed implementation of the rule.
By: Progress in Lending
TRID has been all consuming for the past two years now. Top executives gathered at the Fifth Annual ENGAGE Event to discuss what happens now. What will the mortgage industry be like now that TRID is a reality?
In the end, lenders have to demonstrate that they are making an effort to comply, said Amanda Phillips, senior legal and compliance lead at Accenture Mortgage Cadence. “Initial audits by the CFPB will focus on the lender’s intent to comply. From there, the fines will start.”
“Going forward, the next big regulatory hurdle is going to be HMDA, according to Phillips. “HMDA is next for the CFPB. We all have to think: What are they going to do with that data? With all of that data at their fingertips they will have an informed opinion about the lender even before they walk in your office to perform that audit. So, lenders have to know their data and they have to be able to explain it.”
By: Amanda Phillips for Tomorrow's Mortgage Executive
We still have more time to deal with TRID before the industry will need to refocus its attentions on what’s next, but HMDA and Fair Lending are the candidates most likely to be affected by reform.
For over a year, it has been all TRID, all the time. As we pass the TILA RESPA Integrated Disclosures (“TRID”) implementation date, regardless of how prepared lenders are feeling, one thing is certain: TRID is happening. So now the question becomes: What is the “next big thing” for the industry?
By: Sarah Volling for CBInsight
For Accenture Mortgage Cadence, August represents a month of reflection. August 31st is the end of our fiscal year, marking the unofficial beginning of our forward outlook for the year ahead. The second half of 2014 and the first half of 2015 have certainly been unique for the mortgage industry. The TILA-RESPA Integrated Disclosure (TRID) rule was supposed to go into effect this month, and it is clear that the refinance era is over. This means lenders and technology vendors alike are winding down on their TRID efforts and beginning to look to the future of their business. We like to think of this new beginning as a transformational era; we are sure it will be an era unlike anything we’ve seen before.
Defining this new era are emerging market participants, like Millennials ready to take on their first mortgage, Gen Xers recovering from the recession and Baby Boomers adapting to the technological world we live in. As a result, innovations in efficiency and technology will be more important than ever. This will not be like the cyclical financial landscape we’ve seen in the past; the way that lenders deal with this transformational era will shape the face of lending in the years to come.
In this environment, we believe that two key factors will separate those who succeed from those who struggle.
The first is the ability to go with the flow. Transformation is not something that happens overnight; in the mortgage industry, it is likely to take many years. Think of transformation as a slow-moving wave that eventually finds its way to shore, almost melding into the beach – not the kind that suddenly crashes onto the rocks. The path to accommodate future borrowers looking for mobility and immediacy is not cut-and-dry. No one can predict the rate at which borrowers will demand these enhancements, and some borrowers like the “old way” and will want to stick with it. Along this transformational journey, there will be a need to make numerous tweaks and adjustments.
The second factor is an acceptance that reinvention is the new normal. This is perhaps the harshest reality for many lenders. Old metrics for success will no longer apply as lenders enter uncharted territory. Without tried-and-true metrics to rely on, it’s easy to feel unsure, but it’s essential to stay the course. What will drive process and technology changes if not tried-and-true measurements? The new metrics will be developed by listening to consumers and not making assumptions about borrowers’ needs. Lenders who solicit customers’ opinions, listen carefully and make needed changes will find that reinvention will flow seamlessly.
Transformation of any sort takes time. The institution must undertake its own initiatives in the face of a constantly evolving set of external conditions. Our experience, however, has taught us one sure thing: Proactive – not reactive — steps towards transformation versus reactive steps are the way to go. There’s no reason to wait until the end of 2015 to plan for the future. Lenders should be taking steps today to enter their own transformational era.
DENVER, CO; July 16, 2015 – With the release of the latest version of the Accenture Mortgage Cadence Loan Fulfillment Center platform, Accenture (NYSE: ACN) has completed enhancements to all of its mortgage lending platforms to provide lenders with the required functionality to lend compliantly with the TILA-RESPA Integrated Disclosure (TRID) rule, which now, pending a final rule from the CFPB, goes into effect on October 3, 2015.
The TILA-RESPA Integrated Disclosure rule eliminates legacy mortgage loan documents and replaces them with two new forms: the Loan Estimate and the Closing Disclosure. Seemingly simple, this regulation requires extensive changes to documents, calculations and legacy processes. In order to support customers with the changes, version 15.0 of the Loan Fulfillment Center delivers the revised calculations, new documents, and new rules around document timing and delivery requirements as indicated by the regulation.
The Loan Fulfillment Center is Accenture Mortgage Cadence’s retail-focused, cloud-based loan origination solution. For lenders in need of a powerful yet cost-effective loan origination system with TRID-specific functionality, Loan Fulfillment Center is an ideal solution. Features in this new release include:
- Support for the new Loan Estimate and Closing Disclosure, including the new TILA-RESPA data points and supporting calculations;
- Three business day advance delivery of Closing Disclosures to consumers, as required by the regulation; and
- New options to provide comparison data for fees and Changed Circumstance information.
“Accenture’s portfolio of mortgage lending solutions can help lenders with their compliance obligations under the TRID rule ahead of the effective date,” said Paul Wetzel, senior product line lead, Accenture Mortgage Cadence. “Accenture Mortgage Cadence has a reputation of upgrading our technology well in advance of lender compliance deadlines, and the Loan Fulfillment Center 15.0 release is another example of our commitment. This success is a direct result of dedicated teamwork, talented staff, and customer engagement.
Accenture recently released Enterprise Lending Center version 8.0. This release, combined with the Loan Fulfillment Center release now enables all Accenture Mortgage Cadence clients to be ready with the tools they need to comply with all TILA-RESPA Integrated Disclosure requirements before the effective date.
PERSON OF THE WEEK: Trevor Gauthier is managing director of Accenture Mortgage Cadence, a provider of loan origination software. MortgageOrb recently interviewed Gauthier to learn more about how the company has been dealing with the implementation of the Consumer Financial Protection Bureau's new TILA-RESPA Integrated Disclosure rules (TRID) and how technology will continue to reshape the mortgage market in the years to come.
Q: You’ve been with Accenture Mortgage Cadence for more than a decade. Since taking over as managing director late last year, have things gone as you expected? What has surprised you the most?
Gauthier: There really have been no surprises. I’ve worked with many of the executives closely over the years. The team has a combined 100 years with the company and about 200 years of mortgage experience, so I knew I was starting on the right foot. I went in with a realistic view of where the organization was and where it needed to go.
Taking over the reins in October 2014 meant we were in the midst of TILA-RESPA system enhancements and exponential customer growth, so my immediate plan was to stay the course with the initiatives we already had in motion.
The reality is that this past year has been unprecedented in many ways and will be a year that we will look back on as one of the most transformational in the history of the business.
We will have substantially increased the size of our enterprise customer base, will have continued growth in the mid-markets, and will have significantly enhanced the Accenture Mortgage Cadence Cloud, all while taking on the single largest regulatory change the industry has ever seen - a change that must be implemented flawlessly across our entire customer base.
This is no small order and I’m fortunate to have inherited a team of individuals and a technology platform that are both second-to-none.
Q: As you mention, TRID is the focus for all lenders and vendors in the business right now. What does the future hold for Accenture Mortgage Cadence post-TRID?
Gauthier: Without question, we will continue the momentum we’ve seen since I joined Accenture two years ago. Being part of this company gives us access to world-class resources that put us in an even better position to be the last origination platform our customers ever need. Looking to the future, we will further our technology and bring on new solutions that help lower origination costs while keeping stride with regulatory changes. Although that’s a lot to accomplish, increasing customer satisfaction so that they, in turn, increase borrower satisfaction is no less important.
We already have clients using our technology to push the boundaries on the all-digital mortgage. The next step is moving all customers to the fully paperless mortgage.
Accenture recently surveyed nearly 4,000 North American retail banking customers and discovered that 27% would consider a branchless digital bank if they were to switch from their current bank. What does that mean for the future of lending? It’s trending all digital. I want to make sure our customers are ready for this by making the mortgage process a more enjoyable experience for all: faster, more convenient, online and in-line with other purchase experiences consumers are becoming used to.
Although technology development sounds very impersonal, it’s actually quite the opposite. The factor that will allow us to get our technology and our customers to the all-digital mortgage is our people. I strive to surround myself with great people, which is exactly what we have and precisely what we need to hit the goals and long-term vision of this organization.
Q: With people being at the heart of your commitment to the future of the company, what is your vision for staff development and mentorship?
Gauthier: We have a great team and need to continue to foster a climate in which career and personal growth are at the center of what we are doing. Mentoring is something I am very passionate about. My end goal is to enable each individual around me to perform to the best of his or her ability while also ensuring we are creating the right team. That’s a team that clients and prospects alike want to do business with; a team that people internally want to work with and be a part of; and a team comprising of individuals focused on success - not simply their own, but also the success of others around them. This comes from properly matching skill sets and personalities with roles, constant mentoring, letting individuals take risks and grow, and developing future leaders.
Taking this future-view a step further, our vision is to be the last lending solution our customers ever need through our commitment to partnership, service and technological innovation. Our focus on partnership truly sets us apart from the pack. We take a collaborative approach with all of our customers in order to make sure we are meeting each of their unique needs head on. This begins as early as the sales process but really comes to light during implementation. By hearing what our customers need, then sharing our solution, we create a system that ultimately allows them to achieve more than they ever dreamed possible. Technology innovation is crucial, but serving our customers and providing true partnership lead to a long and fruitful relationship.
Q: What is the best piece of advice you were ever given?
Gauthier: Learn as much, if not more, from an undesired outcome as you do from the good. Whether that be a conflict with a boss, a project gone south, or missing a personal goal, you will grow from these experiences if you look at them the right way. Don't give up; instead, use these as valuable learning experiences and be better for it. It's easy to be crippled by the fear of failure, but we will all fail at many points in our career. It's how you handle those failures that will determine your future success. Work hard. Seek to learn more. As long as you are doing this, opportunities you never expected to present themselves will surface.
This has been the motto of Accenture Mortgage Cadence, and it has led us to our most successful year as an organization. We’ve witnessed firsthand the devastation felt by our industry during and after the crash, but we've also witnessed the industry come back stronger than before. Although times were not always easy, we grew exponentially through those experiences, leading us to this unforgettable year.
DENVER, CO; June 16, 2015– Accenture (NYSE: ACN) launched a new version of the Accenture Mortgage Cadence Enterprise Lending Center platform in order to provide new functionality around key regulatory changes, providing tools to help lenders stay in compliance and provide better service to customers.
New regulations, called the TILA-RESPA Integrated Disclosure Rule, replaced two legacy loan origination documents and affect various calculations and workflow that take place during the loan process, requiring changes to both loan origination technology and lender processes. The Enterprise Lending Center, one of two SaaS-based loan origination systems offered by Accenture Mortgage Cadence, is highly configurable and rules-based, allowing mortgage lenders to update their systems in advance of the regulation deadline.
Accenture Mortgage Cadence was able to roll out the Enterprise Lending Center 8.0 release to accommodate the regulatory changes in advance of the rule’s August 1, 2015 effective date. Enterprise Lending Center Version 8.0 delivers the following enhanced capabilities:
- The new Loan Estimate and Closing Disclosure, which include the new TILA-RESPA data points and supporting calculations;
- Functionality that will enable three business day advance delivery of Closing Disclosures to consumers, as required by the regulation;
- New tests and screens to provide comparison data for fees and Changed Circumstance options
- Updates to partner integrations to improve the user experience with service orders, enabling loan compliance assessments and loan-level constrained taxes and fees estimates.
“This tremendous initiative helps to prepare our clients for the TILA-RESPA rule well ahead of the deadline. Enterprise Lending Center 8.0 gives lenders the opportunity to thoroughly test the two new documents required by the TILA-RESPA Integrated Disclosure Rule – the Loan Estimate and Closing Disclosure. Consequently, lenders will be in a better position to execute mortgage loans in a compliant manner with confidence by the deadline so that customers will see no gap in services” said Trevor Gauthier, managing director, Accenture Mortgage Cadence. “Accenture Mortgage Cadence has a longstanding history of releasing compliance changes in advance of their respective deadlines, and our changes around the TILA-RESPA Integrated Disclosures continues this tradition.”
By: Amanda Phillips and Matt Hydrew for Tomorrow's Mortgage Executive
We started talking the day the RESPA-TILA rule was announced that this regulation is more than the swapping out of three legacy disclosures.
There’s little argument that preparing for this summer’s RESPA-TILA changes is going to be hard. And overwhelming. And exhausting. And frustrating. We said the same about 2010’s RESPA changes. They were difficult as well, but we got through them, and we kept on lending.