Columbia, S.C.-based Avista Solutions, a loan origination software (LOS) provider, has announced that its Avista Agile suite of products – whether for retail, wholesale or correspondent lending – has been updated to be compliant with the changes to the Real Estate Settlement Procedures Act (RESPA) that go into effect Jan. 1, 2010.
At the heart of the RESPA changes is the consumer concern that the initial transaction outlined in the Good Faith Estimate (GFE) can change by the time the loan is closed, with unexpected fees showing up on the HUD-1 Settlement Statement. The new rules require that the documents be consistent, and if there are changes, that they be supported by specific documented changes in the circumstances of the loan.
If the interest rate or amount financed changes, for example, additional fees may be incurred that constitute a valid change in circumstances, and this information has to be re-disclosed and specified on the settlement statement. Avista Solutions' products provide side-by-side comparison screens for users to check for variances between the GFE and HUD-1. All changes of circumstance can be tracked and are instantly available for review, the company says.
Because Avista Agile is a Web-based, software-as-a-service (SaaS) system, the RESPA changes were made centrally by the company as part of its December compliance update.
SOURCE: Avista Solutions