Closing.com, a Web site that allows consumers and real estate professionals to comparison-shop for settlement services online, says it will display cost estimates in the format required on the standardized Good Faith Estimate before lenders are required to use that form beginning Jan. 1.

By the fourth quarter of this year, borrowers using Closing.com will be able to submit a "pre-GFE" to loan originators, allowing for more reliable estimates of closing costs, the company said in announcing the launch of a 2.0 version of its Web site in beta testing.

Closing.com, a Web site that allows consumers and real estate professionals to comparison-shop for settlement services online, says it will display cost estimates in the format required on the standardized Good Faith Estimate before lenders are required to use that form beginning Jan. 1.

By the fourth quarter of this year, borrowers using Closing.com will be able to submit a "pre-GFE" to loan originators, allowing for more reliable estimates of closing costs, the company said in announcing the launch of a 2.0 version of its Web site in beta testing.

Once new rules amending the Real Estate Settlement Procedures Act (RESPA) go into effect, Closing.com "will greatly facilitate lenders’ compliance" with requirements that certain cost estimates provided to borrowers on the GFE stay within set tolerances, Closing.com said.

The RESPA rule changes are intended to encourage homebuyers and homeowners refinancing their loans to shop around for the best deal on not only their mortgage, but on settlement services including title insurance (see story).

The new GFE stipulates that the estimated loan origination charges quoted to the borrower can’t increase at closing.

For required settlement services such as title services and title insurance, charges quoted on the GFE can increase by no more than 10 percent at closing if they are selected by the loan originator.

When borrowers shop for those services themselves or do not choose companies identified by the loan originator, the tolerances don’t apply.

Closing.com says it provides access to a database of more than 140,000 companies providing real estate services in 11 categories, ranging from title insurance and settlement services to home and pest inspections.

Consumers can see each provider’s rates and fees, office locations, credentials and services, and find and compare providers directly through the site.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
EXTENDED: We're giving you one extra day to scoop your ICNY ticket. Prices go up at midnight. Don't wait.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription