Posts Tagged ‘Hud Software’


New RESPA Rule Implementation – 30-Day Review

Tuesday, February 9th, 2010 19:26
Posted by: Rick Kabra

Now that over a month has passed, since the new RESPA Rule has gone into full effect and we have seen hundreds of closings processed with new GFE/HUD forms, it’s clear that the sky is not falling. Like any change, there’s always resistance in the beginning, but eventually all smart people figure out a way to cope with change.

Based on direct discussion with the countless settlement agents I have assisted in completing their HUD closing docs, here are the top challenges I see that settlement agents are facing:

  1. Charges which are normally paid by Seller are being shown on the GFE, which makes HUD preparation twisted: This is a big one. For example, sellers in many jurisdictions (e.g. New Jersey) pay transfer taxes, yet many lenders are showing them on the GFE. This complicates HUD settlement statement preparation unnecessarily.
  2. Lenders are asking that additional information to be shown on GFE-HUD comparison page: We have seen some outrageous demands from lenders to show additional details on GFE-HUD comparison sheet, which we believe are not required by the new rules. I guess lenders are just being overly cautious.
  3. The HUD-1A Settlement Statement (for refinance) might be a thing of past: Due to many practical reasons (e.g. any part of the lender’s itemization paid out of closing), the HUD-1 form is to be used even for refinance. Perhaps, it might be easier to always use the HUD-1 only.  It provides more space and avoids last minute surprises of moving from HUD-1A to HUD-1.
  4. In states where attorneys handle the closing, many lenders are asking that all legal fees be shown on 1102, regardless of whether the fee is considered a closing/settlement fee or not. We think it’s wrong to do so and that it will present complications, if the settlement agent is on the “lender identified list.
  5. Finally, we have seen many new GFE’s without an identified providers list. What happened to the requirement to include a provider’s list WITH the GFE? Are lenders having hard time finding providers who want to be on the list? It’s our understanding that if a list is not attached to the GFE, all providers are considered bucket-2 providers (part of the 10% tolerance group).

I am very pleased to report that our HUD software is able to handle pretty much anything that comes its way. Particularly, I’m pleased with the fact that since all output forms are fully editable, our customers have been able to meet strange requirements from the lender. When we were designing Easy HUD 3.0 software in early 2009, whoever proposed making all output forms editable, God bless him/her!

Please let me know your thoughts in the comments section below.

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Preparing HUD Settlement Statements

Monday, November 2nd, 2009 15:10
Posted by: Rick Kabra

Find out how HUD templates boost profitability

HUD Settlement Statement Required

Most residential real estate transactions whether they are a purchase, sale or refinancing, call for preparation of a HUD Settlement Statement. The Real Estate Settlement Procedures Act (RESPA) mandates a document generally referred to as the HUD Settlement Statement, which requires multiple parties’ approval (e.g. the lender and the other party’s attorney) before a closing can take place. For the purpose of easier disclosure and compliance, information must be entered in a specific HUD Settlement Statement format and style.

Simplify the Documentation Process

Real estate closing transactions involve multiple calculations and a stack of documents. Typically, HUD preparation alone takes several hours due to all the revisions the settlement statement goes through. The key to lessening the complexity of correctly preparing and assembling required documents is automation.

Reduce Real Estate Closing Preparation Time

To efficiently prepare and assemble real estate closing documents, you need to automate. Instead of entering real estate closing data over and over, what if you entered it just once? What if calculations were automatically performed and always accurate? What if closings were always balanced?

Create Templates for Efficiency

Most lenders and title agencies have fixed amount charges and require the HUD in a certain format. Because real estate firms routinely work with same lenders and title agencies, here is how you can streamline your HUD preparation:

• Create templates for each lender and title agency that you commonly use.
• Even better, you can make a template with lender A and title agency B combination.
• Pre-enter all common charges and text labels. Leave amounts blank or annotate with a large number such as 99999999.99, as a reminder that the value needs to be filled in.
• When you get a new client, check to see if a template exists for the lender/title company combination you need. If you expect to work with the combination again, consider making a template.

Increase Productivity and Profitability

By using real estate closing software applications and creating templates, law firms, and title and escrow companies can:

• Standardize (an entire workgroup can use the same starting templates for a closing).
• Minimize errors (as templates have already been used or reviewed earlier).
• Save time (no need to figure out required format again and again).

Streamline workflow, develop templates and automate repetitive tasks. You’ll increase productivity and improve profit margins.

Click here to learn more about HUD settlement statements and HUD software

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