Tech provider Dexma has updated its software to help lenders comply with the new Real Estate Settlement Procedures Act (RESPA) rules that go into effect in the new year.
The company has recently informed all of its lender customers that the Dexma software they are using is now compliant with the new regulations. Dexma made significant changes to its platforms' settlement-costs screens and editors, which the company says will help lenders generate good-faith estimates (GFEs) and HUD-1 settlement statements.
A new GFE screen allows originators to compare the fee amounts, interest rates and points that were disclosed to the borrower on the GFE to those on the final loan and alerts them to any fee variances.
According to the new RESPA ruling, fee amounts charged to the borrower at settlement cannot change from what was quoted to them on the GFE unless there's a valid "change in circumstances." The new ruling also states that lenders must store a record of changes in circumstances for at least three years.
To account for this, new functionality allows originators to document any valid change in circumstance and re-disclose the change to borrowers on a revised GFE. In addition, a new change history screen in the Dexma platform displays any changes made to the disclosed interest rate and fees, along with the reason for the change.