TitleHound Announces Solution to Reduce Tolerance Losses
|April 26, 2011|
Middletown, R.I.-based TitleHound released a solution aimed to reduce costly tolerance losses with the use of its patent pending software product.
Recent implementation of legislative rules surrounding loan officer’s compensation and the elimination of claw backs have now converged with the prior RESPA 2010 GFE requirements. According to TitleHound, this is putting pressure on lenders who must directly cover losses and tolerance cures caused by inaccurate GFE fee quotes. The likely result is to create tolerance losses that will quickly add up and negatively impact earnings.
Lenders are looking for options and finding estimated data solutions from alternative industry sources. This ultimately results in the highest cost estimates which reduce losses but do not eliminate the losses altogether. Furthermore, these estimated data sources may actually drive business away from lenders by estimating the highest potential costs for settlement fees, which may prevent potential borrowers from originating the loan.
“The risk to lenders has exponentially increased. So we are excited that we can help them by providing the tools necessary to stop erosion of earnings and help them increase their ability to originate more loans,” says Jeffrey Adam, president and CEO of NexGen Compliance Solutions, LLC.
With lenders absorbing tolerance losses directly, the need to guarantee accurate data at point of sale from a reliable group of industry experts is now of paramount importance, according to Adams.
“NexGen’s team maintains and guarantees accurate fees for all of blocks 4, 5, 6, 7, & 8 and is the only solution combining a powerful data guarantee with the lowest and most competitive rates on the market,” he said.