Jan 27
Mary Kladde comments on the RESPA Home Mortgage Disclosure Rule’s affect on loan closing speeds and the mortgage industry in today’s American Banker: “Respa Rule Delays Many Mortgages, Torpedoes Others.”
“It’s just mass confusion,” said Mary Kladde, the chief executive of Titan Lenders Corp., a Denver back-office fulfillment provider. “There just wasn’t enough thought that went into the regulations before they were put into place.”
“Under the Real Estate Settlement Procedures Act rule, certain fees cannot be more than 10% higher in the settlement statement (known as the HUD-1) presented to the borrower at the closing table than they were in the good-faith estimate; otherwise the lender has to eat the difference.
“Lenders and third-party settlement providers acknowledge they are listing the highest fees possible to avoid being penalized.”
Access the full article at AmericanBanker.com!
