Real Estate Title & Escrow (RETE), released a Good Faith Estimate (GFE) calculator for its reverse mortgage customers in response to the challenges presented by the new regulations from the Real Estate Settlement Procedures Act (RESPA).
As part of the RESPA regulations, originators are required to provide borrowers with a standard good faith estimate that clearly discloses key loan terms and accurate closing costs. Under the RESPA reform, transfer taxes disclosed on the GFE cannot exceed those paid at closing and title fees cannot exceed a lender’s estimate by more than ten percent said a statement from the company.
Using loan information provided by a loan officer or borrower, RETE’s calculator instantly calculates the “Title Services and Lender’s Title Insurance”, “Government Recording Charges” and “Transfer Taxes” required by HUD’s new GFE.
“In developing a GFE calculator, we knew that we needed to design one specifically for reverse mortgages. I’ve seen and used other calculators designed exclusively for refinance transactions, and trying to generate a reverse mortgage estimate using a Refinance GFE calculator is like trying to fit a square peg into a round hole,” said Peter Burstein, CEO of Real Estate Title & Escrow.
“When you couple the functionality of our calculator with our competitive, guaranteed flat fee, I think that Real Estate Title and Escrow is an attractive solution to any reverse mortgage lender doing business in the states in which we are licensed.”
You can see the calculator in action here.