SOURCE: ClosingCorp


April 08, 2010 01:15 ET

SmartGFE® Makes Good Faith Estimates Easy

ClosingCorp Introduces New Service to Help Lenders Comply With New RESPA Rules

SAN DIEGO, CA--(Marketwire - April 8, 2010) - Mortgage originators can now create more accurate Good Faith Estimates quickly and efficiently using the SmartGFE Service, the largest and most comprehensive source for real estate closing costs and associated data in the marketplace. The new service from ClosingCorp offers a data solution for sections 4 through 8 on the 2010 GFE form, which is backed by the company's SmartGFE Compliance Guarantee.

The SmartGFE Service provides real-time fees from local and national vendors in 9 categories such as title insurance, settlement services, closing attorneys, home inspections, pest inspections, appraisers, and more, as well as local taxes and recording fees calculated specifically for each transaction to help create Good Faith Estimates that meet HUD's new mandated tolerance limits.

The SmartGFE Service is currently integrated with Calyx®Point® 7.2, one of the nation's leading loan origination software platforms, with more LOS integrations in development. Non-Calyx Point users can access the data at the just-launched Web site.

New RESPA regulations require mortgage originators to provide borrowers with binding Good Faith Estimates for loan origination costs, fees and taxes, which cannot vary from the final costs on the HUD-1. Estimates for required third-party services such as title insurance or closing attorney fees have a ten percent tolerance limit. Estimates must be provided within three business days of a loan application and lenders must, subject to certain changed circumstances, make up the difference if final costs exceed the Good Faith Estimate tolerances.

A recent RESPA News survey of closing service professionals and lenders found that a majority of respondents, 80.5 percent, said they have encountered difficulties in beginning to use the new GFE or HUD-1 forms. Of that 80.5 percent, 67 percent said they were having difficulty even though they had taken extensive measures to meet the implementation requirements.

"SmartGFE helps solve many of the widespread problems originators have encountered with the new forms and regulations. Now lenders can create estimates that are competitive because they are based on the most up-to-date data available," said Paul Mass, President of ClosingCorp. "We utilize sophisticated technology and vast databases of fees for closing service providers combined with recording fees and transfer tax county record data to produce a broad, extremely accurate cost estimate that is, in our opinion, unparalleled in the industry."

ClosingCorp is currently delivering data to a number of banks and is in discussion with others. "We also work with key order gateways such as LPS' RealEC, which incorporates our data in their network to serve large bank clients," he said.

Starting May 1, ClosingCorp will offer a SmartGFE Compliance Guarantee for lenders using the service to assure them that data they select using the SmartGFE Service will not result in a tolerance violation. "Our compliance guarantee program demonstrates the confidence we have in the accuracy of the fees, taxes and rates in the SmartGFE," added Mass.

About ClosingCorp
, an independent real estate information services company based in La Jolla, CA, owns and operates the SmartGFE® Service, the SmartClosing Calculator, winner of the 2009 Inman Award for Most Innovative Technology, and™, a site that helps consumers find and compare real estate services, make inquiries and learn more about the real estate closing process.

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