Phil Schulman from K&L Gates LLP in Washington D. C. addressed the recent Greater Illinois Title Company CLE Seminar held with an in-depth analysis of the new RESPA-TILA Mortgage Disclosure Forms. Phil told the attendees that the new combined disclosure forms ‘will require substantial technology changes’ on the shoulders of the title industry and along with the three day rule, “will increase the time for closings as additional time will be needed to explain the form to consumers”. He said the new rule is seeking to improve consumer understanding and to avoid costly surprises at the closing table.
Meanwhile Christopher Gulotta, CEO of Real Estate Data Shield, Inc. speaking on the importance of data security in real estate transactions reminded attendees that the Illinois Rules of Professional Conduct states that the lawyer “must act competently to safeguard information relating to the representation of a client against inadvertent or unauthorized disclosure….”
He also summarized the responsibility of an attorney to take “reasonable precautions to prevent the information from coming into the hands of unintended recipients.” He told the group that there are many practical steps that can be taken today to begin the compliance process and assessing your firm’s risk profile. These include staff training, implementing a shred-all policy, background checks and instituting a ” clean desk” policy.
Penny Reed, Vice President at Wells Fargo Home Mortgage also addressed the close to 200 attendees at the GIT CLE Seminar and said that the CFPB means business. She pointed to the CFPB Bulletin in which the Bureau points out that since the parties to a transaction are service providers under the rule, they must take steps and have internal controls in place to protect the non-public personal information (NPPI) of the bank’s customers or risk termination of any relationship or dealing with the financial institution. She said lenders will be ‘skeptical’ of receiving non-encrypted email from any party involved in a real estate transaction.