Loan originators using Calyx Point will soon have access to ClosingCorp’s SmartGFE service, allowing them to compare actual rates offered by title insurance companies and other settlement services providers at the national, regional and local level.
The integration of the SmartGFE service into Calyx Point in November will help loan originators comply with changes to the Real Estate Settlement Procedures Act (RESPA) taking effect Jan. 1, ClosingCorp said.
Calyx Software claims to be the No. 1 provider of mortgage solutions for banks, credit unions, mortgage bankers and brokers. With the integration of ClosingCorp’s SmartGFE service, loan originators using Calyx Point will be able to access the rates of participating settlement service providers at ClosingCorp’s Web site, Closing.com.
The SmartGFE service provides rates and vendor information directly from title insurance, home and pest inspection, appraisal, notary and home warranty services companies, allowing originators to create a good faith estimate (GFE) that’s based on current rates from a single, neutral source, ClosingCorp said. Closing.com will also provide property taxes, transfer taxes and recording fees for each transaction.
Beginning Jan. 1, the Department of Housing and Urban Development (HUD) will require that loan originators use a standardized GFE form that’s designed to help consumers comparison shop and protect them from "bait and switch" tactics by loan originators.
When loan originators select title insurance or other settlement services for borrowers, the estimated charge for those services listed on the GFE will not be permitted to increase by more than 10 percent at closing.
Estimated loan origination charges quoted to the borrower on the GFE can’t change at all, and mortgage brokers must disclose yield-spread premiums to borrowers and credit them against their closing costs. …CONTINUED