With new Real Estate Settlement Procedures Act (RESPA) regulations coming into effect January 2010, financial institutions are faced with strict deadlines on both issuing revised Good Faith Estimates (GFE), and curing any non-compliant differences in the Final GFE and HUD-1 documents presented to borrowers during the mortgage process. Revised GFEs must be sent out within 3 business days of receiving qualifying Changed Circumstances. Tolerance violations must be cured within 30 calendar days or lenders will face risks to their reputation, increased Regulator scrutiny, and potential lawsuits and/or regulatory fines.

Pyramid Solutions' SmarterLending RESPA Compliance helps financial institutions manage risk by achieving compliance quickly and easily with increased management visibility. It automatically identifies exceptions and pinpoints discrepancies requiring resolution.

How we do it:

Revised GFE

• All newly submitted loan documents received during the Fulfillment process are quickly identified, indexed, and routed for evaluation
• The processor is presented with the new documents, loan data, along with the rest of the loan file to evaluate whether the new information constitutes a qualifying Changed Circumstance and an updated GFE can be produced
• Manages the process to ensure compliance with the3 business day deadlines

Identifying and Curing Tolerance Violations

• Using advanced capture technology, the GFE and HUD-1 documents are scanned, and relevant fields extracted and loaded into the ECM repositories.
• The Final GFE and HUD-1 documents are identified through a combination of rules-based and manual selection.
• The final GFE and HUD-1 are compared field by field and exceptions (based on RESPA tolerances) are automatically routed to appropriate RESPA curing personnel. 
• Line-item tolerance violations are highlighted for resolution.
• Comprehensive operational dashboard empowers management to take action to meet deadlines.
• Alerts notify key personnel of approaching deadlines and enable them to take action before incurring penalties.

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SmarterLending RESPA Compliance enables financial institutions to achieve compliance on time, reducing or eliminating tolerance violations. Contact Pyramid Solutions today to learn more about how we can help you with RESPA compliance.