MRG Document Technologies (MRG), a provider of mortgage technologies to banks, credit unions and other lenders, announced that it has completed the drafting of new Good Faith Estimate (GFE) and Settlement Statement (HUD-1) forms required by the upcoming Real Estate Settlement Procedures Act (RESPA) changes and is prepared to have institutions in compliance by the Jan. 1, 2010 deadline.
The RESPA changes were enacted by the U.S. Department of Housing & Urban Development (HUD) to ensure consumers receive more accurate estimates of closing costs, as well as a clearer comparison of the GFE and HUD-1 forms. The GFE will display the estimated total settlement costs on the first page, and lay out the terms of the loan in an easy to understand manner. These steps enable consumers to better comparison shop among loan originators and match up the estimated costs to the actual costs at closing, creating a more transparent, and better overall lending experience.
“Although these changes represent a good deal of preparation for lenders, we expect to see increased consumer confidence in the lending process as a result,” said Laura LaRaia, an attorney and director of customer service at MRG. “As lenders prepare for the Jan. 1 deadline, implementing the forms developed by MRG will drastically improve the efficiency and accuracy of their compliance program in this time of transition. By outsourcing the production of the forms, financial institutions can focus on other aspects of the changes, such as training for the procedural adjustments.”
MRG offers a browser-based system for the preparation and delivery of compliant document packages, electronic disclosures, loan modifications and other services for mortgage lenders, banks and credit unions nationwide. MRG guarantees that its products are in compliance with the most recent legislative and regulatory changes.
For more information, visit www.mrgdocs.com.