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Closing.com gets ready for RESPA reform

Site adopting new Good Faith Estimate format

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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 mort...