From SmartGFE to LumenRMS – We’re TRID Ready.
To succeed in today’s competitive business environment, you not only need to work hard; you need to work smart. Smart means simplicity. Smart means guaranteed. Smart means savings.
ClosingCorp pioneered SmartGFE® nearly five years ago and since that time, it’s been a staple with lenders nationwide. LumenRMS, the new risk management suite, will be the flagship product for the future of closing going forward. The name SmartGFE® will be sunset, and the new offering will be known as LumenLE. LumenLE is a module within LumenRMS and will be available August 1st. Additional LumenRMS offerings will be brought to market later in 2015 and into 2016.
What You Need to Know About TRID Changes.
The website SmartGFE.com will continue to be available to prevent any disruption in business processes. We will however be redirecting to a Lumen-branded URL in a subsequent release. User names, passwords and business rules will not change on August 1st nor will they change with the URL migration.
As with SmartGFE, LumenLE provides a guarantee-backed quote based on actual rates and fees from ClosingCorp’s network of nearly 20,000 service providers, including appraisers, title and settlement services, owner’s title insurance, government recording fees and transfer taxes as charged by state and local governments. The guarantee, as before, will be based on certain criteria/eligibility being met based on TRID rules.
LumenLE will also support the continued need for a GFE and HUD. It is optimized to help lenders meet the challenges of the August 2015 closing disclosure changes and create a sustainable approach for the future.
What is happening to our SmartGFE contract and guarantee under TRID?
Technically, the current SmartGFE® contracts do not permit you to use ClosingCorp services in connection with LE required by TRID. Additionally, our current guarantee does not protect you against tolerance violations when using our services to process mortgage transactions under TRID. Our sales and account management teams have begun to give notice of the upcoming changes as a result of TRID in advance of the August 1 deadline to ensure no loss of usage and coverage. Details will be made available by an acknowledgment/notice document.
Also, we are also expanding our industry-leading compliance guarantee so that our customers can continue to be protected against tolerance violations when using ClosingCorp’s LE services to process mortgage transactions covered by TRID. Certain criteria/eligibility must be met within the guarantee. These details will be made available to you with the acknowledgment/notice document.
How many Service Categories (formerly GFE blocks) will be supported on the new LE product?
Just as ClosingCorp delivers data on the current GFE blocks 4 through 8 plus appraisal, it will deliver sections C, E, H and appraisal in block B on the LE.
Will I have the capability to run scenarios in parallel well before the August 1 date?
Prospective clients can evaluate the new LE solution under an NDA and Evaluation Agreement for a stated period. Existing clients can test via their LOS provider or ClosingCorp’s web-enabled LE solution.
>> TRID compliance is a complex, data-driven challenge and there are many “devils in the details”. Remember, the legislation surrounding TRID was an 1100 page document. There is only so much information which can be conveyed in writing. Don’t take others word for it. Call our team of experts or complete the form to the right to ensure you ask and receive the answers that you need.
Imagine a world where good faith estimates no longer take hours to compile, put your business at risk of regulatory violations, or jeopardize your ability to close loans. Imagine no longer. Whether you’re a retail, correspondent or wholesale lender, ClosingCorp’s SmartGFE® delivers the accurate, reliable closing cost data you need to deliver superior client service while maximizing business efficiency and improving your bottom line. All accompanied by ClosingCorp’s guarantee which can reduce tolerance violations. The guarantee will also allow you to do away with arbitrarily high, non-competitive GFE estimates for fear of paying tolerance violations.
|Benefits||Retail Lenders||Correspondent Lenders||Wholesale Lenders|
|Elimination of tolerance violations||x||x||x|
|Reduction in labor costs||x||x||x|
|Real-time alerts if recording fees or transfer taxes change||x||x||x|
|Audit trail for changes in circumstance||x||x||x|
|Technology platform integrations with Calyx Point®, Ellie Mae® Encompass360®, Black Knight™ Empower®, QuestSoft Compliance EAGLE℠, Savana Inc. (formerly FIS LOS) and other proprietary systems||x||x||x|
|Guaranteed RESPA Compliance for Blocks 3-8||x||x||x|
|Custom integration available||x||x||x|
|Loans that are easier to sell in the secondary market||x||x||x|
|Documented loan quality that’s easier for investors to assess||x||x||x|
|More control over third-party loan quality||x|
|Faster quality control assessment and faster file setup||x|
|Value-added service for broker clients||x|
SmartGFE is simple to use.
At ClosingCorp, we think getting accurate data for your GFEs should be simple. With most GFE solutions, however, it’s anything but. Manual entry requirements, multiple user inputs, and limited automation make for a complex, time-consuming and work-intensive process. All for data that’s anything but reliable.
SmartGFE® integrates loan file data, census and county property data, and a lender’s business rules and requirements, all in a single, seamless process. All with one click, and all in less than a minute. And unlike other solutions, SmartGFE produces actual data, not estimates.
Of course, for those rare occasions when complete flexibility and manual input is a necessity, SmartGFE enables you to override the system rules to customize your experience.
SmartGFE is guaranteed.
With ClosingCorp’s SmartGFE, gone are the days of having to worry about incurring a RESPA-tolerance violation every time you create a good faith estimate for a client. That’s because every GFE you create is populated with actual closing cost data that’s guaranteed to protect you from RESPA tolerance violations related to Blocks 3 though 8. And when we say guaranteed, we mean it.
That’s right. We’re so confident in the accuracy and reliability of SmartGFE® that if the fees obtained from it are not compliant with the applicable tolerance restrictions under RESPA regulations, ClosingCorp will cover the cost of the discrepancy (subject to the terms & conditions of its guarantee).
That’s a guarantee you can rely on because only SmartGFE provides actual, vendor-verified rates for Blocks 3-8, including the ever-important recording fee and transfer tax data, thanks to the industry’s most sophisticated and comprehensive recording fee and transfer tax database, which is a proprietary ClosingCorp asset.
But that’s just the beginning. All relevant changes to a loan file are automatically captured, date stamped, and updated with appropriate fees based on every change in circumstance. That means you get the security of having a complete audit trail from GFE to HUD-1, and a Compliance Guarantee Certificate, which contains the audit trail.
SmartGFE delivers savings.
Let’s face it. At the end of the day, the bottom line is your bottom line, and operational efficiency and cost containment are vital to the success of your business.
SmartGFE® is the only solution that delivers actual closing costs on any residence in the United States. Actual data delivered directly to you means less time spent researching costs and creating GFEs, and it means you’ll virtually eliminate costly RESPA tolerance violations.
In other words, actual data means actual savings. Big savings.
Potential Savings Using SmartGFE (10,000 GFEs/Year)
|Assumptions||Traditional GFE Preparation||GFE Preparation Using SmartGFE|
|Number of Good Faith Estimates (GFE) Per Year||10,000||10,000|
|Number of Mortgage Loans Closed Per Year||5,000||5,000|
|Hourly Labor Rate for a GFE Processor||$20||$20|
|Time Spent Creating a GFE||30 minutes||1 minute|
|Labor Cost to Create a GFE||$10||$0.33|
|Annual Labor Cost to Create 10,000 GFEs||$100,000||$3,300|
|Average RESPA Tolerance Violation Per Closed Loan||$75||$0|
|Total RESPA Tolerance Violations||$375,000||$0|
|Annual Savings with the SmartGFE||$471,700|
Based on ClosingCorp 2010 survey. Annual savings does not include cost of service, which varies based on volume.
So what does smart mean for your business? The ability to boost your bottom line by saving time, lowering costs, and increasing business efficiency.
Data & Delivery
SmartGFE® from ClosingCorp provides lenders with access to actual, vendor-verified rates for Blocks 3-8, a subset that includes critical recording fee and transfer tax data straight from the most comprehensive and reliable database in the industry.
|Block 3||Appraisal management companies|
|Block 4||Title and settlement services|
|Block 5||Owner’s title insurance|
|Block 6||Third-party real estate closing services required by the lender|
|Block 7||Government recording fees|
|Block 8||Transfer taxes charged by state and local governments|
For lenders needing to turn around a good faith estimate within 72 hours of receiving a loan application, the need for fast, accurate and reliable data for Blocks 3-8 is paramount.
GFE and HUD-1 ready
SmartGFE data is designed to flow seamlessly into your GFE and HUD-1 reports. And because of its sophisticated data mapping capabilities, the SmartGFE will quickly and easily accommodate the Consumer Financial Protection Bureau’s proposed disclosure changes whenever they occur.