Top challenges
Information Services firm, Ernst Publishing Company recently released a report that shows 80 percent of respondents currently consider the top challenge presented by the Good Faith Estimate (GFE) and HUD-1 are recording fees and transfer taxes, a shock to the company.
“That such a large majority of respondents considered recording fees and transfer taxes to represent their most difficult problem is surprising,” said Gregory E. Teal, President and CEO of Ernst. “Clearly, from a business standpoint, there is much riding on populating the GFE in as accurate a fashion as possible. The failure to do so can result in expensive consequences, so understandably there is anxiety over that effort.”
Six months ago, Ernst’s survey results revealed that recording fees and transfer taxes were the top challenge. NationalMortgageProfessional.com said, “To be sure, technology plays a key role in producing these fees and helping to ensure their accuracy. While lenders have invested in the technology, understanding the complexity of the fees and the due diligence necessary to maintain the systems requires tremendous focus.”
Thirty-nine percent of survey respondents reported a decrease in costs when they automated their processes.
“Automation can make handling these fees easier, if it is provided by a provider who builds in the idiosyncrasies needed to reflect these fees accurately and updates them continually,” said Teal. “Retaining a third-party that sources its own data and delivers innovative solutions will ensure accuracy, save time, and cut costs.”
