ClosingCorp has announced the availability of its SmartGFE Service for wholesale and correspondent markets, empowering the wholesale and correspondent lending channels to remain viable by providing lenders immediate access to Real Estate Settlement Procedures Act (RESPA)-compliant Good Faith Estimate (GFE) data. The system delivers live rates for local and national real estate closing services, as well as transfer taxes and recording fees needed to generate accurate GFEs.
“At a time when many large lenders have left the wholesale and correspondent markets, the SmartGFE Service is designed to help lenders mitigate third-party risk and comply with new regulations established by the Dodd-Frank Act,” said Paul Mass, president of ClosingCorp. “Lenders today must take advantage of available technology to create quality loan files at the onset of the process, reduce tolerance violations and improve their bottom line.”
The SmartGFE Service streamlines workflow and offers a valuable quality control (QC) mechanism for inbound loan files, helping lenders reject bad files and prevent tolerance violations. The service protects lenders faced with the challenge of the loan officer compensation provisions within Dodd-Frank, which prohibit a lender’s ability to “bill back” any cures paid out due to incorrect fee disclosures. Lenders who receive third-party originated loans now have increased financial accountability for accurate GFEs, and the SmartGFE Service provides a cost-effective method to ensure consistently precise GFE data.
The SmartGFE Service enables wholesale and correspondent lenders to provide a portal whereby accurate GFE data for disclosures is shared with business partners and ultimately backed by a compliance guarantee. Lenders can also private-label the SmartGFE solution to deliver to their brokers. This allows brokers to apply accurate data to create GFEs initially, and then transfer the compliance certificate to the lender.
"More than ever, traditional lenders must create valuable, cost-effective partnerships with wholesale and correspondent originators," said Cathy Blaszyk, vice president of lender services for ClosingCorp. “Many lenders now understand that engaging technology to generate precise GFE data can reduce risk and improve overall operations.”