GFE-based quote tool is now RESPA compliant
Washington, D.C. – Lenders navigating new RESPA rules can bank on the accuracy of Federal Title & Escrow Company’s online quote system to prepare their Good Faith Estimates.
“Our online quote is accurate to the penny, or we’ll pay the difference,” company president Todd Ewing said. The final RESPA rule puts lenders on the hook to provide accurate Good Faith Estimates. Federal Title takes some of the pressure off with an accurate, online GFE-based quote system.
If a lender uses the system to prepare a Good Faith Estimate and winds up in violation of the tolerance limitations, Federal Title will pay the difference between the quote and the final HUD-1 executed on the day of settlement, Ewing said.
It’s called the Zero Tolerance Guarantee, and it specifically covers HUD-1 series line items 1100 and 1200, also known as “title charges” and “government recording and transfer charges,” which include transfer and recordation taxes, recording fees and title insurance premiums.
As the final RESPA rule that took effect at the beginning of this year aims at transparency, the title insurance industry is beginning to shift toward the same business model Federal Title adopted some time ago, Ewing said.
“Lenders are not only seeking instant, electronic quotes for title work that don’t throw off any specified tolerances, they’ve come to expect them,” he said. “With so much information available through a few taps of the keyboard, who wants to call up and ask for numbers?”
With this spirit in mind, Ewing also announced the launch of the company’s revamped website that includes an informative blog, convenient search functionality and improved navigation.