Wolters Kluwer Financial Services has launched a new Real Estate Settlement Procedures Act (RESPA) post-implementation audit service. Through the service, the company’s compliance and risk management professionals can help banks and credit unions effectively comply with recent changes to the RESPA.
Since the RESPA revisions took effect on January 1, financial institutions have identified several common challenges in complying with them. These include meeting the new fee tolerance and Good Faith Estimate (GFE) re-disclosure requirements, and the responsibility to make sure third parties they do business with, such as mortgage brokers and settlement agents, are also in compliance.
The RESPA post-implementation audit service helps institutions put the necessary policies, procedures and documentation in place to overcome the most common and complex challenges.
The review includes an examination of an institution’s lending, compliance, vendor management, and staff training procedures. It also includes a loan file review that looks at GFEs and HUD-1 and HUD-1A forms for accuracy and adherence to all RESPA requirements.
Moreover, Wolters Kluwer Financial Services’ compliance and risk management team then offer a diagnosis of each institution’s RESPA compliance program, highlighting any areas of potential concern. And they suggest practical ways in which policies, procedures and documentation can be enhanced from compliance and operational standpoints.
Jason Marx, vice president and general manager of mortgage for Wolters Kluwer Financial Services, said: “The effective compliance date for RESPA passed several months ago but financial institutions are still tackling related obstacles. Now is a perfect time to evaluate their compliance programs and ensure they are meeting the requirements through the easiest, most cost-effective routes possible.”