Mortgage loan originators using the closing fee calculator technology of LodeStar Software Solutions in 2022 averaged one inaccuracy requiring a cure out of every 22,000 fee estimates or quotes, according to the company.
LodeStar is a national provider of closing fee-related compliance tools for mortgage lenders.
The TILA-RESPA Integrated Disclosure rule (TRID) mandates that closing fees reported on each transaction’s Closing Disclosure (CD) must fall within a specified level of accuracy in comparison with the Loan Estimate (LE) disclosure issued by the lender at the beginning of the mortgage process. Where specified fees disclosed in the CD fall outside of those accuracy guidelines, that lender is legally responsible for curing the difference.
“One of the most transparent ways to determine the true effectiveness of the TRID guidelines is to determine cure rate,” said LodeStar CEO and co-founder Jim Paolino in a release. “We’re proud to be an integral part of adding clarity to the mortgage lending process, and thrilled to demonstrate just how accurate, and current, our data is. We’re also pleased to say that this rate is almost twice as good as what we experienced in 2021.”
Paolino further noted that LodeStar financially guarantees the closing fees its technology provides to lenders assembling fee estimates or TRID disclosures and covered the cost to cure for clients where there were any inaccuracies. He said he is confident that the guaranteed accuracy is why LodeStar grew by nearly 10 percent year-over-year from 2021.