Helping Lenders Keep their Fingers on the Pulse of Fluctuating Real Estate Fees
Consumers want to work with a lender that is transparent and forthcoming across the entire homebuying process, particularly when it comes to disclosing the fees associated with a loan. As a lender, failure to redisclose fees to a borrower within three business days of a change could cost you hard-earned money. On top of this avoidable loss in revenue, undisclosed fees can also lead to an uncomfortable closing experience, with the borrower feeling misled or dissatisfied with your level of communication.
In the high-cost 2022 purchase market, preventing expensive fee cures is a key measure lenders should take to protect their bottom line. However, it is easier said than done. The fluid nature of real estate fees makes fee monitoring an arduous process for many lenders. Fees vary based on property location, loan amount, borrower status, loan type and more, so manually tracking when and which loans are impacted can become a full-time job.
To address these struggles, Black Knight offers the Ernst℠ Fee Monitoring Service, a patented monitoring service that not only alerts the lender and settlement agent of any fee changes, but also automatically recalculates the fees and provides updated quotes within 24 hours. With this solution, the fees quoted up front have the best chance to match fees at the closing table.
The Ernst Fee Monitoring Service integrates with many loan origination systems (LOS), including the Black Knight Empower® LOS, to help automate the process. Daily scanning assesses any recording and transfer tax changes that impact loans in a lender’s pipeline.
With the Ernst Fee Monitoring Service activated, Black Knight maintains details of all transactions processed through the system for 60 days or more. If a fee changes, updates are “pushed” to the LOS and the transaction is recalculated using original input values automatically generating a change of circumstance for Empower users. Lenders are notified of the change based on their alert preferences.
The fee tracking capabilities of the Ernst Fee Monitoring Service are even more useful when combined with powerful analytics from the Actionable Intelligence Platform℠ (AIP℠). The Fee Cures Suite combines these two industry-leading resources with loan information in the Empower LOS, allowing lenders to identify fee trends and inconsistencies, and drill down to loan-level data to reduce fee cures.