Ernst Publishing Company has reported that a survey it conducted showed that 57 percent of respondents think that the title and lending industry communicate “well” or “very well” in their efforts to comply with the Real Estate Settlement Procedures Act (RESPA). In addition, 35 percent describe the communication between them as adequate. The Ernst survey was e-mailed to more than 8,600 clients of the firm, of which almost six percent responded.
“The ability for title agents and lenders to communicate is critical to compliance with RESPA, so that statistic is welcome news for the mortgage industry,” said Gregory E. Teal, president and chief executive officer of Ernst. “Moreover, it suggests that they are working to ensure that regulations are closely followed and complied with.”
The aim of the study was to provide insight on how the industry was faring under several new regulations. “According to the survey results, many financial organizations have increased their ability to handle the new rules. For instance, 52 percent of respondents reported they were more prepared for the CFPB than they were six months ago,” said Teal.
Some of the other highlights of the report are as follows:
►65 percent of respondents reported they did not believe there is still a disconnect between RESPA requirements for the Good Faith Estimate (GFE) and the closing table.
►82 percent of respondents thought that lenders are able to meet RESPA requirements and provide clear instructions for closing.
►84 percent reported that costs decreased or stayed the same when they implemented an automatic tool to assist with the GFE HUD-1 process.
►59 percent believe the combined GFE/TILA will make closing loans easier for them.
