Tuesday, November 24, 2009

Good morning, title world.

Just wanted to take a moment to give thanks.  We're still living, eh?  Even if you aren't in the business, you're still living and that means everything.  Breathe in and breathe out.

For those of us in the biz, get ready to rock and roll on RESPA.  We're gearing up and working to get our arms around all the issues.

I'm glad to have taken a mental break from the RESPA discussion.  I'm thankful HUD stayed the course.  I absolutely believe the new GFE will be a good tool for shopping consumers, which was the original intent of the form in the first place.

HUD has successfully and ruthlessly [in a good way, though scary] cut out all the freaking BS.  It's apples to apples, baby and that's the way to shop.

Yes, lenders will have to create an extra form or two and yes that means more paperwork.  You'll need a separate CASH TO CLOSE summary.  Hope you make it real easy for the consumer to find that figure and I do hope folks use similar language.  Having a uniform GFE puts everyone on the same page but we'll still have to coach consumers about finding that "other" form and the magic "cash to close" figure.

So, I'll be back.  We're putting the final touches on a new service tying into the new GFE.  I want to get a techie vet on it before giving you the details, but I like to share ideas and the give and take and group problem solving is a good thing, eh?

Have a Happy Thanksgiving everyone.  See you on the other side of the stuffing.  ;)


Dave Wirsching said...

I think HUD blew it big time. They set up a system that only works if someone chooses to shop.

If they are steered to a title agent the new HUD is WAY WORSE - no disclosure of junk or other fees, no detail at all. Don't even get me started on enforcement - how would anyone be able to divine what fees were actually charged?

We both know that the vast majority of people still don't/won't shop. This is setting those folks to be taken advantage of - I don't think that was the plan, or was it?

Diane Cipa said...

Hi, Dave: Well, since our marketing is consumer facing I get lots of calls from shopping consumers. They all have GFEs in their hands and ask me to help them understand what they are looking at. With the new GFE, it's easy. I can tell then to place each lenders first page in front of them and look at the bottom figure. THAT's the comparison shopping for the consumer. It's that simple.

The title insurance providers just have to do a good job of marketing and we'll have a place at the table.

I like it.

I expect that at least for the forseeable future enforcement will happen.

HUDs been doing an excellent job of enforcement these last two years even with a big proposed rule on their plate. Now that it's out there, I think enforcement will be even easier for them.

Anonymous said...

I don't like the new RESPA HUD/GFE at all. More confusing ine the long run. I feel that this puts the independent title agent in a worse place - canary in a coal mine. This could be the final blow since lenders will not list us. Why would they. Why would consumer shop around? Most people don't understand title insurance and have no idea how to shop. Heck, it's hard to find an independent title agent to begin with!

Diane Cipa said...

If you advertise and market yor product and services directly to consumers, they WILL find you. If you don't, they won't.