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eHUD

Discrepancies between estimated and actual closing fees are common and require lenders and settlement agents to reconcile the differences. Unfortunately, new RESPA rules make discrepancies between the Good Faith Estimate and HUD-1 costly for lenders. eLynx can help mortgage professionals stay in compliance and avoid costs and penalties by automating the HUD-1 approval process.

 

eLynx’s eHUD solution offers real-time HUD-1 collaboration between lenders and settlement partners.  Using the online tool, lenders can instantly see differences between data in the GFE they delivered to the borrower and the HUD-1 being prepared by the closing agent. Differences that fall outside of the tolerance set by RESPA rules are highlighted.  The lender can negotiate with the settlement partner to reconcile the data or can issue a new GFE that matches the HUD-1 data.

 

eLynx’s eHUD:

  • is not a point solution, but is integrated into an electronic closing network that reduces fragmentation in the mortgage process and has 100,000 connected settlement agents
  • incorporates the RESPA regulations and identifies issues quickly
  • allows lenders and settlement agents to quickly finalize a HUD-1 well in advance of a closing
  • quickly and easily supports the disclosure, and redisclosure (if necessary) process
  • does not replace existing LOSs or Title systems, but provides a mechanism for connecting the information contained in both
  • allows lenders to deliver the HUD-1 data to GSEs

eHUD can help:

  • ensure compliance with RESPA regulations concerning good faith estimates
  • negotiate HUD-1 fees easily and quickly using on-line collaboration tools
  • reduce per-closing costs, eliminate overhead, and support more closings with few staff
  • improve customer/borrower satisfaction by providing closing documents and the HUD-1 in advance of the closing.
  1. The lender sends eCN a preliminary HUD-1 that includes the fees as disclosed to the borrower.  
  2. The settlement agent views the HUD-1 and updates the data to reflect actual fees. Note: If the settlement agent is also using the eCN integrated system, their HUD-1 data can be imported into eCN automatically, eliminating the need to make entries manually.  
  3. The eHUD screens highlight any differences between the data provided by the lender and the data provided by the settlement agent. The lender and settlement agent can then reconcile the differences.   
  4. The eHUD system automatically compares the negotiated fees with the GFE provided to the borrower.  
  5. The settlement agent prepares the final HUD-1 and marks it as ready for review; the system automatically notifies the lender.  
  6. The lender reviews the updated HUD-1 and can accept or reject it electronically. The settlement agent receives notification of the decision.  
  7. Once approved, the final HUD-1 and the associated data are sent to the lender LOS.

 

Throughout the review and negotiation process, only one of the parties can access the data at a time and a complete audit trail is maintained.