*See What I Mean?*
**By Tony Garritano**
***Remember the industry scramble to be RESA compliant? Well, the new RESPA Rule has worked. It did its job. PROGRESS in Lending Association has learned that Ernst Publishing Company, an authority on land recording requirements to the mortgage marketplace, reports that a survey it conducted earlier this month showed that 57% of respondents think that the title and lending industry communicate “well” or “very well” in their efforts to comply with The Real Estate Settlement Procedures Act (RESPA). In addition, 35% describe the communication between them as adequate. Here are the other survey findings:
****“The ability for title agents and lenders to communicate is critical to compliance with RESPA, so that statistic is welcome news for the mortgage industry,” said Gregory E. Teal, president and chief executive officer of Ernst. “Moreover, it suggests that they are working to ensure that regulations are closely followed and complied with.” The Ernst survey was e-mailed to more than 8,600 clients of the firm, of which almost 6% responded.
****The aim of the study was to provide insight on how the industry was faring under several new regulations. “According to the survey results, many financial organizations have increased their ability to handle the new rules. For instance, 52% of respondents reported they were more prepared for the CFPB than they were six months ago,” said Teal.
****The survey also found that 65% of respondents reported they did not believe there is still a disconnect between RESPA requirements for the GFE and the closing table; 82% of respondents thought that lenders are able to meet RESPA requirements and provide clear instructions for closing; 84% reported that costs decreased or stayed the same when they implemented an automatic tool to assist with the GFE-HUD1 process; and 59% believe the combined GFE/TILA will make closing loans easier for them.
****So, while RESPA and other recent regulatory changes may seem like a burden, when the industry responds to these changes by further automating, everyone wins.