Applied Business Software (ABS), the developer of The Mortgage Office loan origination and servicing software, has announced a software update that will aid loan originators with Real Estate Settlement Procedures Act (RESPA) regulations. The Mortgage Office software update now calculates and prints federally compliant documents. Effective Jan. 1, 2010, RESPA will enforce the largest sweeping change to the process of loan originations since 1974. As a result, loan originators will be required to generate several new forms, including a revised Good Faith Estimate (GFE), disclosure of key loan terms, closing costs and yield spread premiums (YSPs) as well as a revised HUD-1 Settlement Statement. The new statue is meant to help home buyers by disclosing surprise closing charges and fees, overall making the process more transparent for the buyer.
Many lenders are not eager to enact this new statue, a key reason being they do not have the latest computer software in place to create and print the new required forms. The U.S. Department of Housing & Urban Development (HUD) plans to enforce the new RESPA provisions in the first quarter of 2010, all lenders will be expected to implement the changes promptly to avoid being subjected to penalties and fines. The new requirements will affect approximately half a million loan originating professionals and millions of mortgage loans in 2010.
Jerry Delgado, president of ABS, states, “This update took nine months of research and development, including communications with industry organizations.”
For more information, visit www.absnetwork.com.