Closing-disclosures

Closing-disclosures

Visionet offers solutions for automating the tedious tasks of mortgage closing process. These solutions are built with cutting-edge technology to extract relevant data from documents, which are then used during the closing process. Visionet’s Auto-CD interprets the closing instructions prepared by the lender and automatically generates the Closing Disclosure sheet. It comes complete with accurate fees calculation that incorporates data from the Good Faith Estimate. Visionet’s Auto CD ensures that fees are placed in the correct line item on the CD and that appropriate recording fees are captured on the CD. This is all done automatically within minutes, providing huge efficiencies in preparation for closing documents with great accuracy.

Visionet offers seamless integration with customer systems for CD preparation by providing an in the cloud solution that supports flexible data interchange as well as a user friendly web-based interface to view and edit the CD document to support last minute data updates.

Process

Closing Disclosure is the key part of the closing process. Lenders expect title companies to prepare and provide CDs as soon as they can. Typical turn time is 1–3 hrs. Visionet Auto CD Service enables the title companies to prepare the CD quickly and send it to lender for approval

Process

Once the loan gets approved, lenders send the order to a title company to conduct closings and issue the title policy. Settlement Statement is an integral part of the closing process that lists all the fees charged by the lender as well as any fee collected by the Title Company for their services. Typically the fees below are listed on the CD

  1. Prior Mortgage Payoffs to 3rd party lenders
  2. Lender Origination and loan processing fees
  3. Title Company Fees
  4. Government Recording Fees
  5. 3rd Party fees like Appraisals, Surveys, Insurance fees
  6. Cash Due To/From the borrower

The lender prepares a document known as “Closing Instructions” which has the entire lender related fees. This closing instructions document can also have other guidelines from the lenders about how to conduct the closing. The Closing Instructions document format is based on the platform the lender uses (LOS System or any custom solution lender uses).

As a manual process, users from Title Company upon receiving the Closing Instructions start entering the fee types, payee and amounts in different sections of the CD Form. They go line by line and keep on entering all the data until they are finished. This is a tedious job since one CD may have over 100 data entry fields.

Once CD is prepared and reviewed, Title Company sends this CD to the lender for approval; at this point the lender may ask for some revisions/corrections in the CD and once these corrections are made CD is considered as Final that can be sent along with the other closing documents to the Closing Table for borrower to sign.

After closing and once the title companies reviews the signed closing package through their post-closing audit they need to disburse the loan. Based on all the transactions entered on the CD their Title production system creates necessary checks/wire-outs to fund the loan.

OCR Functionality

Auto CD functionality is implemented using VisiCapture. It receives the request from AtClose through a service. Using OminPage’s APIs, it scans closing instructions looking for pre-configured data items from the PDF file. It extracts the data items and returns the response in the form of xml file.

Benefits of Using Auto CD

Auto CD Service can kick off immediately after closing instructions are uploaded into the system. Through the direct integration with the Title Company platform, Visionet Auto CD service can extract data from the Closing Instructions document and return within couple of minutes in form of XML. The user will be notified that CD is being processed by Auto CD Service so one can go and make the adjustments or corrections if need be. This should not take more than 5 minutes since all the lender fees and GFE amounts are already loaded into the CD.

Using Auto CD Service title, companies can return the prepared CD to the lender well within their SLA’s and get their ranking improved with the lenders.

Auto CD Service supports major lender’s closing instructions already and any new closing instructions can be programmed very quickly and turn over into production.

Performance Measurements

The process of gathering data elements from Closing Instructions used to take 20-25 minutes. This time has been reduced to less than 5 minutes using the Auto CD technology.


Testimonials

Additional Resources

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Webinars

Challenges in meeting the GSE mandate for uniform closing dataset (UCD) delivery
Date: September 20th, 2016 02:00 PM EST

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