Title Company of the Rockies, Inc. is RESPA Ready
RESPA Reform represents a sweeping, once in a generation change in the way real estate mortgage loans are presented to consumers. The successful incorporation of these significant changes in how we do business together presents unique challenges to those involved in the real estate industry. The deadline for implementation of RESPA Reform is fast approaching. Lenders will be required to use the new Good Faith Estimate (GFE) form for any loan application taken after January 1st, 2010. Accordingly, if a new GFE form has been issued to a prospective borrower, the closing must be conducted using the new HUD-1 form by our company. TCR uses the RamQuest software platform to produce our settlement statements on your behalf. RamQuest has been working feverishly to make certain our production platform will capture all of the new business rules necessitated by RESPA Reform. You can be assured your closing will be compliant with the new RESPA rules when they come into effect.
Lenders will now have to quote actual (or maximum) fees earlier in the transaction. In addition, there are also new restrictions on how much all of those quoted fees (the Lender’s fees as well as the fees of other service providers) can increase between the issuance of the GFE and a closing. Further, if the service is such that a borrower is afforded the opportunity to “shop” for a service provider, the Lender is suppose to provide the borrower with a written list (the List) of service providers. Given that the accuracy of service provider’s quoted fees will be crucial to the new process. In this post-RESPA Reform world, Lenders will need to know the pricing for each settlement service provider on their Lists.
Traditional business roles and those disclosures are changing. Yield spread premiums will no longer be paid to the mortgage broker in a 2010 RESPA transition. Commissions will no longer be expressed to the parties as a percentage of a sales price. The new HUD-1 form will now reflect a new trend in how commissions are calculated and paid accordingly. For our company, the agent-underwriter splits of premiums will be disclosed in the new HUD-1 form. Given these significant changes in settlement calculations and presentations with the new HUD-1 form, our company is streamlining our pricing structures for fees and premiums to accommodate all of these changes in the way we do business.
Samples of the new GFE and the new HUD-1 can be accessed for your review along with a detailed Primer addressing the important details of RESPA Reform, as follows:
NEW GFE
NEW HUD-1
RESPA READY PRIMER
FAQ'S from HUD on RESPA Reform
What Title Company of the Rockies, Inc. is doing to make RESPA Reform easy for You
Our Pricing Structure for Refinance Transactions commencing January 2010:
- Quoting Bundled Rates per county for all refinance transactions
- Using Flat Fee closing costs per county for all refinance transactions
- Providing you our customized TCR Rate Quoter per county in the TCR Web Site so you can accurately pull our title and closing fees for your issuing your next GFE
Lenders, please put Title Company of the Rockies, Inc. on Your List!
We are RESPA Ready!
Besides the above, we are always happy to give you a direct quote orally and via email for GFE issuance purposes or otherwise by contacting any of our convenient branch locations in the Colorado High County. See, the Contact Us . You can also submit your order electronically to us via our web site using our Place An Order.
Realtors, Developers, Attorneys and other business partners, please especially note our pricing structure for Purchase-Sale transactions and for transactions (other than refinances) will remain as we have done so in the past, being an itemized pricing structure for all title insurance and endorsement premiums along with our settlement fees for a closing or escrow. We will however be required to use the new HUD-1 form for most of your closings dependent upon transaction type and if a GFE driven loan is an element of the transaction. That “as-is” itemization will occur outside of the new HUD-1 form.
Rates and Fees in Colorado:
Please note that in Colorado Title Insurance Underwriters are responsible for directly filing their rate schedules with the Division of Insurance. We will determine if a reissue credit or other permissible discount can be applied to the transaction during the title examination process for all transactions submitted to our company. Title Insurance Agents like our company are also required to file our Settlement Fees directly with the Division of Insurance. Colorado is therefore a “filed rate state” and those pricing structures must be strictly adhered to as filed with the Colorado Division of Insurance.