Cypress Software Offers Consulting, Tech For RESPA Compliance

Posted by Orb Staff on December 22, 2009 No Comments
Categories : Residential Mortgage

Cypress Software Systems says it is offering consulting services, as well as enhanced versions of its Mark IV automated loan software and Mark IV Mortgage Module, to help financial institutions comply with the Real Estate Settlement Procedures Act (RESPA).

The RESPA rule requires lenders to use a new standardized good-faith estimate (GFE) disclosure and a revised HUD-1 settlement sheet that is designed to provide clearer disclosure of closing costs and how much a consumer will pay.

Janette VanMeter, senior vice president of Stillwater National Bank in Tulsa, Okla., says that with all the current and upcoming regulations around mortgages and consumer protection, compliance will be a hot issue among financial institutions in 2010.

"Consumer protection is a big deal throughout the industry and among government regulators, and the Regulation Z and RESPA acts are likely only the first steps in what is expected to be sweeping reform," she says, adding that Cypress' Mark IV software has "put safeguards in place�so we don't have to necessarily know and understand every aspect of each new rule and regulation."

Starting Jan. 1, 2010, lenders will have to reveal their fees upfront on a new four-page GFE form that is given to the borrower three days after they sign a mortgage application, and the originator's fee cannot be increased before closing. Comparatively, the old form was only one page.

SOURCE: Cypress Software Systems

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