The UCD is a definition of data elements, like name, or address, used during the settlement process. It will allow the necessary automations between title companies and lenders coming along with the new Settlement Disclosure.
Rekeying of information from the Lender to the Settlement Agent will no longer be acceptable under the new rules. Stop and think about that statement for a moment. Between you and the lender, nothing is going to be rekeyed. The fact that the Closing Disclosure must be in the hands of the Borrower 3 days before settlement is what is driving that requirement so I don't see it going away.
For us that means SoftPro is going to create a mechanism to transfer the information. It also opens the doors for Settlement Agents to new Lenders. No longer will the lack of connection stop a deal. Unless that connection is your internet connection, with the new CFPB you'll be DOA. But I digress.
At this point, if you check out the information provided by the CFPB, it says coming soon.
That I found funny. It says the UCD will be published after the Final Rule is published by the CFPB.
The information set that is being talked about is rather huge, so defining it isn't something that can be done in short order. The UCD has been being created by translating the MISMO format which has been around for years, into the new closing disclosure format. The MISMO group has documented how to use the current data points to the new disclosure. That speeds up the creation of a new format by many factors.
All in all the announcement that the CFPB is releasing the UCD format is a good thing. It will provide a common language for much of the industry. When a tool is built to communicate with one bank, it will work with another. I expect those tools will be provided by SoftPro through the 360 platform. They have much of the MISMO work already complete.