Closing.com has unveiled a widget that can be embedded in any Web site to help consumers and real estate professionals calculate closing costs by querying a database of more than 140,000 companies to obtain actual fees and quotes for settlement services ranging from title insurance to home and pest inspections.

When users enter information about a transaction including property location, purchase price and loan amount, the SmartClosing Calculator widget computes the fees, charges and taxes that lenders must include on good faith estimate (GFE) provided to mortgage applicants.

By shopping around for the best deal on settlement services, Closing.com estimates consumers can save $300 to $1,500 per transaction.

Beginning Jan. 1, the Department of Housing and Urban Development (HUD) will require that loan originators use a standardized GFE form that’s intended to help consumers comparison shop and prevent "bait and switch" tactics by loan originators.

HUD will prohibit lenders from changing the estimated loan origination charges quoted to the borrower on the GFE. For required settlement services such as title insurance, charges quoted on the GFE can increase by no more than 10 percent at closing when they are selected by the loan originator.

Improving consumers’ ability to comparison shop and prohibitions on bait-and-switch tactics on loan terms and settlement service fees should save borrowers about $700 a loan, HUD estimates (see story).

Closing.com has said its "SmartClosing" technology will not only help consumers, but facilitate lender compliance with the new requirements, which are part of changes to rules governing enforcement of the the Real Estate Settlement Procedures Act (RESPA).

***

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
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
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