Credit Plus Adds Option to Pricing Strategy

Credit report provider Credit Plus is adding a new pricing model to help mortgage lenders avoid financial penalties for violating Real Estate Settlement Procedures Act (RESPA) requirements on good faith estimate (GFE) disclosures. The Maryland-based credit information firm said it will now offer single-price credit reports, in addition to their current model. Included in the single-price report are customizable supplements, potential score improvement alerts, unlimited secondary use fees and unlimited Fannie Mae and Freddie Mac reissue fees, Credit Plus said. The company added it will continue its current pricing structure for lenders and brokers who do not wish to purchase single-price credit reports. The Department of Housing and Urban Development (HUD) made changes to RESPA that took effect January 1, 2010 and requires lenders and brokers to provide customers with a standard GFE that clearly discloses all loan terms and closing costs. Closing agents are also required to provide borrowers with the new HUD-1 Settlement Statement that compares consumers’ final costs with the originally quoted costs. Beginning May 1, if the final price for several of the services exceeds 10% of the quoted price, lenders face penalties. “Offering the option of a single-price credit report provides much-needed flexibility in today’s mortgage environment,” said Credit Plus national sales and marketing director Greg Holmes. “We believe the single pricing structure will facilitate compliance with the new HUD regulations, particularly the Good Faith Estimate.” Write to Austin Kilgore.

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