Ernst Analyzer Program

Managing the loan closing process under new RESPA regulations requires the lender and the closing agent to communicate more than ever. The new requirements make the lender responsible for any differences between the most current good faith estimate (GFE) and the settlement statement (HUD 1) at closing. This includes paying the borrower for differences in fees quoted outside of the statutory tolerances. The closing agent is now responsible for assessing these differences and communicating any discrepancies to the lender and the borrower. Complicating the process, the borrower must now be reimbursed by the lender for any discrepancies within 30 days of closing. We can help.

The Ernst Analyzer Program is designed to assist with completing the transaction by comparing the HUD1 information provided by the closing agent to the latest GFE sent to the borrower. The Analyzer Reconciliation Report compares Recording Fee and Transfer Tax calculations generated by Ernst (or other third party vendors) to the actual fees and taxes determined by the closing agent and creates a report clearly communicating any discrepancies. Additional Analyzer Reports can be customized and are excellent tools for compliance evaluations, pre-closing reviews and post-closing audits.

What does the Analyzer do?

If a lender under estimates fees quoted on a GFE, the Analyzer helps identify why. The Analyzer Program functions automatically with any Recording Fee and Transfer Tax calculation generated through Ernst’s programs. With additional input it can also be applied to any third party vendor fees quoted in the GFE.

Ernst Analyzer Program:

• Increases accuracy of the HUD1 at pre-closing and closing.
• Can be used by any lender and closing agent.
• Can be applied to all third party vendor fees quoted on the GFE if they are maintained in an Ernst Custom Fee Engine or input manually.
• Assists with meeting compliance requirements by generating a transaction reconciliation report.
• Can be accessed in an XML and DLL environment.

Analyzer Reports:

Analyzer Reports are easily produced. The Analyzer Reconciliation Reports are designed to document specific fee changes for a specific closing. For example, the report below shows that the original GFE quote estimated transfer taxes totaling $1,600 but the actual taxes to be paid at closing increased to $2,000 as a result of an increase at the recording jurisdiction, resulting in the lender being responsible to the borrower for the $400 shortfall.

Analyzer Summary Reports can identify inaccurate trends over specific periods of time. Analyzer Demographic Reports decrease incorrect disclosures that are costly and repetitive, like inaccurate page counts in a specific location illustrated below.

Why use Ernst’s Analyzer Program?

Saving time and money by closing transactions quickly will require that both the lender and the closing agent work to coordinate the process. Ernst’s Analyzer Program provides an automated solution that benefits everyone involved in the closing process by:

• Effectively communicating discrepancies between the lender and closing agent prior to closing.
• Protecting the lender in preparation for closing by identifying material changes that can impact the transaction.
• Documenting why fees are different between the GFE and HUD1, ultimately meeting compliance requirements.
• Providing automated, easy to read, fully detailed reports.
• Identifying inaccuracies in estimates that can be corrected, saving time and money in future transactions.