eLynx has released its new eHUD service, which is a component of the company's Electronic Closing Network (eCN) that eLynx says helps lenders and closing agents comply with settlement regulations governing good-faith estimates (GFEs) and the HUD-1 form.
Changes to the Real Estate Settlement Procedures Act (RESPA) regulations limit the differences allowed between the fees disclosed on the GFE and the amounts collected from the borrower at the closing table. These controls require that lenders and settlement agents work closely to negotiate fees and limit differences on the HUD-1 while preparing mortgage documents.
eLynx's new eHUD service provides a mechanism for lenders and settlement agents to collaborate electronically and in real time, allowing parties to negotiate the fees on a HUD-1 before reaching the closing table, the company explains. The eHUD service also automatically compares the fees to the original GFE, identifying differences that exceed the allowable amount.