In the past, loan originators were not required to disclose Owner’s Title Insurance as a line item on the Good Faith Estimate. So, it is not unusual for LO’s to routinely omit this cost when they prepare 2010 GFEs. Under new HUD regulations the costs for lenders and owner’s title must be displayed separately in Blocks 4 and 5. The amounts fall under the 10% tolerance rule. Without owner’s title coverage split listed in Block 5, wholesalers are being forced to reject GFEs, which can cause time delays and, in some cases, risk the possibility of repricing issues depending on market conditions.
One way to address this issue is to use the SmartGFE service, which automatically captures the coverage information and populates both Block 5 and the fee worksheet with the correct information. It is a quick and efficient way to create a compliant GFE.
Start using SmartGFE’s services today in Point. Simply go to Interfaces > Compliance > SmartGFE. For more information, call 888.433.6645 or visit www.smartgfe.com.