6165 Greenwich Drive, Suite 300
San Diego, CA 92122
ClosingCorp provides customers with closing-cost intelligence from its nationwide network of service providers and its proprietary recording fee and transfer tax database so they can save time, lower costs and stay in compliance.
“The CFPB has said to lenders that they are on the hook for using the best information available and quoting rates and fees accurately,” said Brian Benson, ClosingCorp’s CEO. “But even with the uniform closing requirements, there is no standard way of defining closing fees. We’re the experts who know the rules and ensure that the product at the closing table provides the framework the regulators are looking for.”
ClosingCorp built SmartGFE in 2010 to help customers comply with Dodd Frank legislation. It is a RESPA-compliant solution that generates real-time, accurate closing-cost data from more than 12,000 residential real estate service providers. As the regulations continue to be clarified and have to be implemented — especially with regard to rate change time frames and tolerances — SmartGFE is continually updated with features that help lenders comply.
“We’re helping to standardize a part of the loan origination process that has been non-standard. We are blocking and tackling to address the most recent guidance of the CFPB, stimulating dialogue and providing leadership to help lenders be competitive,” Benson said.
Unlike many other GFE solutions, SmartGFE uses actual closing costs on any residence in the country. And ClosingCorp gives clients a Compliance Guarantee that eliminates RESPA-related variance violations. SmartGFE provides real-time alerts if recording fees or transfer taxes change, and leaves an audit trail for changes in circumstances, reassuring both regulators and investors.
“The fact that we’re using actual closing costs, instead of tables and templates with generalized data, gives our customers an edge, because they can quote accurately and quickly in an automated way. We have an ecosystem of all things that do with closing — including title and settlement — and we understand that ecosystem.”
One of the challenges faced by national lenders — who may have hundreds of thousands of loans across the country — is selecting providers to help quote services based on local networks. ClosingCorp offers the opportunity for lenders to measure their providers against others and help determine the propensity for the rates to change, allowing lenders to hold their vendors more accountable for pricing and performance.
“They need to know: How do my rates compare to those being charged by other providers servicing clients in this area? With access to this information they can have a different kind of conversation with their partners, and better manage their networks. Having context for this information is very powerful,” Benson said.
As regulations have increased and origination markets have changed, companies have to become more efficient, Benson said, and decide where they are going to spend their technology money.
“The industry is starting to recognize that in order to comply they have to think about fees and service categories in a standardized way,” he said. “Fee standardization as it pertains to reporting is a long-standing challenge for the industry, but the problem has been kicked down the road for a long time because of the perceived effort and costs involved. The good news is that ClosingCorp allows people the information needed to address these concerns without a tremendous amount of investment.”
ClosingCorp has been talking to regulators, lenders, title companies and other service providers to understand their challenges and concerns. “There’s a whole dialogue taking place around addressing these choices, as well as the benefits of making the closing experience transparent to the consumer.”
“We recognize how complex the path is for lenders right now, and we feel fortunate that we are in a position to provide insightful guidance,” Benson said. He indicated that ClosingCorp had grown revenue steadily despite the slowdown in the industry the past year.
Visit closing.com to learn more about ClosingCorp and its SmartGFE solution.