Skip to main content

Ernst Study Finds: GFE Led to Accurate Fee Disclosures, Price Increases Exaggerated
Oct 29, 2010

Ernst Publishing Company has released a survey of large retail lenders, settlement companies, large title insurance companies and credit unions that shows that the cost of mortgage fees has not increased due to the Good Faith Estimate (GFE) and the prices that are disclosed are simply more accurate than in the past. That’s one of the insights to be gleaned from the “Ernst Good Faith Estimate” survey, that reflects the views of 226 respondents from lending institutions who were polled from Oct. 11- Oct.16. “The perception that the fees for county recordings, appraisals, credit reports and so forth have increased dramatically as a result of the good faith estimate is simply not correct,” said Jan Dalton Clark, vice president of marketing and sales for Ernst. “The GFEs provide accurate prices and those prices have remained flat or experienced increases in the low single digits.” Ernst has been the leading authority on land recording requirements for almost two decades, processing more than 120,000,000 transactions annually. According to the survey, 57.5 percent of respondents reported county recording fees had increased five percent or less over the past 12 months. In fact, more than 50 percent of respondents noted that vendor controlled fees, such as appraisal, credit reports, title searches and so forth, had also increased five percent or less over the same time period. In addition, 51.4 percent reported that lender controlled fees increased five percent or less over the past 12 months. “There is a perception in the mortgage industry that that the costs had risen a hefty 35 percent, but that is simply not the case, as our research indicates.” said Clark. According to the survey, the reason for the confusion over fees is that the prices that appear on the GFE are precise—and not understated as they were in the past— so some people assumed the higher prices reflected increases in the cost of fees. Ernst’s research, however, shows that is not what has occurred. “45 percent of survey participants thought that the recently reported double-digit increase in closing costs that are reflected on the GFE are the result of more accurate reporting of the total funds needed to close a loan,” said Gregory E. Teal, president and CEO of Ernst. In contrast, just 36.8 percent of survey participants thought that the prices reflected increases in closing costs. “The benefit of the GFE to all parties involved in a real estate transaction is that there can be more confidence in the estimates that are provided, and that’s good for our industry,” said Teal. For more information, visit
Texas State Legislators Looks To Protect Reverse Mortgage Borrowers

A Texas House Bill has been introduced to prevent false, misleading or deceptive advertising by reverse mortgage lenders.

Jun 02, 2021
Could Prudential Standards for Nonbank Mortgage Servicers be Eased?

From The Desk Of The “Om-Bobs-Man”

Regulation and Compliance
May 31, 2021
Get Ready to Duck and Cover

After years of hands-off attitude by regulators, a new wave of mortgage enforcement is building. Expect a tsunami.

Regulation and Compliance
May 13, 2021