“Fee cures and the costs associated with them – entirely preventable expenses – are contributing to the already ballooning cost to originate a mortgage,” said Tim Bowler, president of ICE Mortgage Technology.
After reviewing nearly 90,000 mortgages, ICE found lenders wasted an average of $1,225 per loan on fee cure-related expenses to correct disclosure errors. Over one in three loans required some type of fee cure during just a six-month period studied.
“With origination inching off a 30-year low, lenders need to be as efficient and detailed as possible. Every basis point counts,” Bowler said
The primary culprit behind many fee cure fiascos is failure to keep up with frequently changing closing costs like transfer taxes. ICE documented over 31,000 transfer tax changes from 2021 through early 2023 alone that lenders struggled to implement accurately.
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