Losing Your Tolerance For GFE Tolerances? HUD Software Can Help

It’s been a few years since the changes to the RESPA Rule that introduced the Good Faith Estimate (GFE) and tolerances. However even now some real estate professionals are a little confused by them. Tolerances don’t have to be complicated when you have a tool like Easy HUD title closing software to help you out.

Tolerance Basics

You probably already know this but it’s worth reviewing. Lenders must provide a GFE of the actual cost of a loan, including all charges associated with the transaction. When the actual loan is issued it may be permissible to charge more than the GFE depending on which of three categories the charge falls into:

  • 0% Tolerance: Fees such as origination charge and transfer taxes cannot exceed the GFE. If they do, then the lender must cover the costs out of pocket. Of course it is always allowable for charges to be lower than the GFE.
  • 10% Tolerance: Government recording charges and certain other fees may vary by as much as 10% over the GFE. However one mistake many lenders make is assuming that each charge must be within 10%. Actually this category looks at all 10% Tolerance fees taken together and the sum of charges must not be more than 10% greater than the sum of GFE charges. This means an individual fee can be more than 10% above the GFE as long as the total is not.
  • No Tolerance: Any other fees, including homeowner’s insurance and daily interest charges, can come in higher than the GFE at no penalty to the lender. Often these are values such as escrow deposits where any excess will be returned to the borrower anyhow.

How Easy HUD Settlement Statement Software Helps

Keeping track of the different tolerances can be confusing, especially in the 10% Tolerance category. Unfortunately making a mistake can have serious consequences. Billing a borrower for charges outside of the tolerance limits laid out in the HUD program could be viewed as fraud regardless of whether or not it was due to an innocent mistake.

Easy HUD automatically creates a GFE-HUD comparison sheet so you can see all fees and tolerances on a single screen. You can add additional line items as needed, ensuring you have a complete report. You are less likely to make errors and less likely to get into trouble as a result.

Easy Soft’s law practice management software has been helping legal and real estate professionals run their practices more efficiently and more safely for over 25 years. Contact us to find out more about our products.

Posted by Rick Kabra on in HUD Software | Leave a comment

Generate Over 130 ICLE Forms With NJ Family Law Software

A family law practice in New Jersey can generate a staggering amount of paperwork. In addition to Case Information Statement preparation, attorneys need to produce a host of retainer agreements, letters and other documents related to divorce. CIS helps produce those items quickly and easily with the FamilyDocs module.

Manual Forms Are Slow

It may seem easy to put out a standard form like a Retainer Agreement using word processing software. You probably have a template and all you need to do is fill in a few blanks, print it and mail it. Unfortunately it’s also easy to make mistakes, such as misspelling a client’s — or worse a judge’s — name on a form. And while using a word processing template might be faster than typing it from scratch, it still takes valuable time.

In addition, who sends paper correspondence anymore? Well, OK, sometimes you need to print something out but for many documents it would be better to email an electronic version. It saves time, money and trees. You can do this with your word processor but only by saving the file, opening your email program, browsing for the file and attaching it to an outgoing message.

CIS Produces The Forms You Need

Easy Soft’s Case Information Statement software has an optional module called FamilyDocs that includes over 130 forms from New Jerseys’ ICLE library. Why is this better than using a word processor? Because CIS automatically pulls relevant information from the case file. The spell checker keeps you from making embarrassing mistakes, and the editor allows you to customize each document.

The saved forms are included as part of the client’s file so you never lose track of them. And, though you can print the documents out, you can also email them as PDF or Word files — right from within the CIS New Jersey divorce software! You don’t have to struggle with an outside email program just to send a letter.

You need more from your attorney practice management software than just the ability to fill out a form. CIS and Easy Soft’s other products are designed to serve all the needs of the modern law office. Explore our website and find out more about our products today.

Posted by Rick Kabra on in NJ Family Law Software | Leave a comment

Easy Soft’s Easy HUD Program Helps Your Real Estate Office Go Paperless

Although paper still has a place in business, there are a lot of advantages to using electronic documents. Digital files can be stored, retrieved, backed up and modified more easily than their paper counterparts. Easy HUD, Easy Soft’s RESPA-compliant HUD settlement statement software, has features that help you remove some of the paper from your life.

The Electronic HUD 1 Settlement Statement – The primary purpose of Easy HUD is to make it easy for you to complete the HUD closing statement. You’ll find it’s much faster to complete the form on your computer, and you’ll make fewer errors as well. Although you still have to print the form to file it, you can email PDF or Word versions of the document to clients and other parties.

Other Electronic Documents – Add the Real Estate Documents module and you can generate over 200 additional real estate forms. As with any document generated by Easy HUD, you can print these forms or email them as PDF or Word files. You can email right from within Easy HUD without needing to open an outside application.

1099-S Filing – Ah, those dreaded tax forms. You can stop putting those off and file 1099-S forms with the IRS as soon as you close. The 1099-S Filing module automatically pulls relevant information from the client record, ensuring the 1099-S will agree with the HUD-1. Not only that but you can file these forms electronically for a low fee, meaning you never have to print them at all.

LinkedDocs – Real estate transactions often involves a lot of other documents generated by you and by other parties. Many of these documents are electronic and you can easily link them together with the LinkedDocs feature of Easy HUD. Link the HUD form with all documents located on your computer or anywhere on your business network, and then open them from within Easy HUD. If you also have paper documents, it’s easy to scan them into your computer and link them to create one central information reference.

Paper probably will never completely go away in our society any more than the horse or the bow and arrow did, but it is going to become increasingly irrelevant to business. Take advantage of Easy Soft’s law practice management software to give your office the capability to handle the growing number of electronic forms you come across in your professional life.

Posted by Rick Kabra on in HUD Software | Comments Off

Cut Real Estate Business Costs By Using Title Closing Software

Any business owner wants to increase profits. You can do this by improving revenue, but that’s not always in your control. You can also boost profits by cutting costs. When it comes to real estate, some of your biggest costs are your time. Take advantage of Easy HUD technology to speed up the HUD-1 settlement statement to save time, save money and build success.

Widening Thin Profit Margins

It’s not exactly news that the real estate market has its ups and downs. The recent real estate crisis drove a lot of agents and attorneys into other careers. Unfortunately so many real estate practices run on such tight margins that a run of bad luck can wipe out the business. You need to be able to control your costs and maintain good profits even during the bad times.

You may think your costs are pretty low but costs are about more than just money. Your time is valuable and the more time you spend struggling with the HUD 1 settlement sheet, the less time you have to find new clients and other business opportunities. Nowadays there is no excuse to still be filling out the form by hand, typing calculations into an adding machine or the calculator on your phone. Leverage technology to your advantage.

HUD Settlement Statement Software To The Rescue

Easy HUD is the answer a lot of real estate businesses are looking for. This affordable, easy to use software can cut closing time by as much as 70%. The automatic calculations reduce the number of errors on the HUD form, and the integrated tax tables make even the most complicated tax situations easy to figure.

Easy HUD is ideal for the solo real estate agent, attorney or investor. It doesn’t require extensive computer knowledge, a complicated IT infrastructure, or a huge capital investment. It is a straightforward but comprehensive tool that meets the needs of the real estate industry. Optional modules allow you to add the features you need without paying for features you don’t.

Easy Soft has over 25 years of history providing legal practice management software to attorneys and real estate professionals. Try Easy HUD and see how quickly it streamlines your business operations, freeing you to go out and build your real estate empire.

Posted by Rick Kabra on in HUD Software | Comments Off

Use Divorce Settlement Software To Help You Clients Pay Less Taxes

We are nearing tax time and this is a good time to talk about tax optimization. Often the most obvious settlement option for your client isn’t actually the best one. Sometimes a different settlement that seems the same on the surface actually puts the client in a better tax position. You can use Divorce Financials divorce software for attorneys to analyze the tax implications of any settlement offers.

Alimony Vs. Child Support

On the surface alimony and child support seem the same: payments from one person to an ex-spouse. However in the eyes of the IRS they are different. Alimony is income. As such it is deductible to the payor and the recipient must claim it. Child support on the other hand is not considered income. It is considered a normal expense when raising a child rather than income for the child or parent. After all, if you buy your child a pair of shoes that’s not considered taxable, so neither are child support payments.

Many states have formulas for child support or alimony but that doesn’t meant the parties have to use those values. Creative family law attorneys can use the analysis tools in Divorce Financials divorce legal software to analyze the tax benefits and propose a settlement that is better for both parties.

Tax Optimization

Divorce Financials includes an Alimony Analysis tool that allows attorneys to examine the tax impact of different alimony settlements. This allows attorneys to trade off alimony and child support to find an optimal tax position. For example one payor might prefer to pay more alimony, which is deductible, than child support, while another who doesn’t itemize deductions might prefer paying more child support.

The IRS doesn’t really care since they get their taxes either way. However it’s important to have settlement statement software analysis to back up the offer. This allows the spouse and the spouse’s attorney to see the logic behind the numbers and, if the agreement should end up in court, does the same for a judge.

Not all divorces will benefit from tax optimization, but for those that do it can make a big difference. Taking full advantage of Easy Soft’s line of attorney practice management software allows attorneys to give their clients more choices and provide better service.

Posted by Rick Kabra on in Divorce Financials | Comments Off

How Crucial Conversations Affect New York State Spousal Support Negotiations

I’ve recently finished reading “Crucial Conversations” by Kerry Patterson, et al, and this is a book that should be read by every family law attorney and divorcing couple out there. Using this book in conjunction with EzSupport-NY family law software New York attorneys can negotiate settlements more quickly and fairly.

Keeping A Cool Head

The book helps anyone learn how to handle high-stakes, emotional negotiations effectively. Short of nuclear arms treaty discussions, divorce settlement negotiations are probably the ideal situation to apply these methods — and atomic bombs are less volatile than divorcing couples!

Attorneys can use the strategies here to keep negotiations on track, trying to defuse the situation by reminding both couples of the real goal (hint: it’s not “screwing over my ex”). They can use it to speak to their clients and help them understand what they can reasonably expect to ask for and get. And they can even use it on themselves since attorneys are people too and as much as they try to remain above the emotions of the situation, they can still find themselves getting into passionate arguments with the opposing counsel. But what does this have to do with New York child support software?


Just The Facts, Ma’am

One strategy to defuse a volatile conversation is to stick to objective information. EzSupport-NY, Easy Soft’s dedicated NY family law software, provides the analysis tools needed for attorneys to present an impartial settlement offer backed by data and statistics rather than emotion and insults. It also allows attorneys to prepare multiple support offers and compare them, so they can go into negotiations with counteroffers already prepared.

Although few divorces end up before a judge, the ones that do tend to be the most volatile of all. This is where it is even more important to back your settlement offers with cold, hard data rather than hand-waving character assassination. The fact is even if your client’s soon-to-be-ex really is a sleazebag, New York is a no fault state and that’s ultimately not going to matter. What will matter is the numbers and analysis you can provide.

The art of negotiation is important, but so is the ability to back your negotiation skills with hard facts. Include Easy Soft attorney practice management software in your arsenal and you will be able to settle more quickly and profitably.

Posted by Rick Kabra on in NY Family Law Software | Comments Off