TILA-RESPA Integrated Disclosure Rule Now In Effect

The 2015 TILA-RESPA Integrated Disclosure Rule update is now in effect. We’ve broken down two common issues of compliance that many businesses have been having since the Rule’s release, below.

NPPI means Non-Public Personal Information and translates to any piece of sensitive data that directly identifies or relates to a specific person. This information must be protected to ensure that the confidentiality of the individual remains intact.

Examples of NPPI:

• Name Of Individual
• State I.D. Card Numbers
• Social Security Numbers
• Driver’s License Numbers

• Health Records
• Date Of Birth
• Credit Card Numbers
• Debit Card Numbers

The Problem:

1. Utilize a disclosure system which operates around non-repudiation and the ability to provide a complete audit trail.

Find the passage from the Integrated Disclosure Rule here:

11.3 When is the Closing Disclosure considered to be received if it is delivered in person or if it is mailed? (§ 1026.19(f)(1)(iii))

If the Closing Disclosure is provided in person, it is considered received by the consumer on the day it is provided. If it is mailed or delivered electronically, the consumer is considered to have received the Closing Disclosure three business days after it is delivered or placed in the mail. (§ 1026.19(f)(1)(iii); Comment 19(f)(1)(ii)-2) However, if the creditor has evidence that the consumer received the Closing Disclosure earlier than three business days after it is mailed or delivered, it may rely on that evidence and consider it to be received on that date.

2. It’s been recommended that businesses follow the “best practices” provided by ALTA (the American Land & Title Association), which suggests the following:

• “ensure secure collection and transmission of Non-Public Personal Information”
• “use only secure delivery methods when transmitting Non-Public Personal Information.”

You also need to comply with GLBA (the Gramm-Leach Bliley Act), which states:

501(b)(a), each agency or authority described in section 505(a) shall establish appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards (1) to insure the security and confidentiality of customer records and information; (2) to protect against any anticipated threats or hazards to the security or integrity of such records; and (3) to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer.

The Solution:

1. NeoCertified’s Secure Email Solution is the perfect vehicle for distributing disclosures to your clients. The process involves non-repudiation, which means that all messages sent, received, opened, and replied to are monitored, logged, and authenticated. An audit can be performed on any secure message sent through NeoCertified, so that if necessary in a legal matter, the information can be used in a court of law to help corroborate or disprove a specific claim.

2. ALTA suggests that mortgage and title businesses “ensure secure collection and transmission of Non-Public Personal Information” and “use only secure delivery methods when transmitting Non-Public Personal Information”. Fortunately for those businesses, NeoCertified currently offers a GLBA-compliant Secure Email Solution, which is accessible via any mobile device or computer through our Cloud-based portal and currently integrates directly into Microsoft Outlook. All data is housed and protected in our commercial-grade SSAE 16 Type II Certified Datacenter, and utilizes a 256-bit encryption process.

If you're not currently using a secure email solution, with the 2015 Integrated Disclosure Rule now in effect, you may want to re-evaluate using one.

If you have any questions about our secure solutions or you’d like to receive a quote for our NeoCertified Secure Email, please give us a call at 877-613-5036 or send us an email to [email protected].