Higher Closing Costs May Not Be

USA Today 
August 31, 2010

P. 6A

Bankrate.com reports a 37 percent rise in average mortgage origination and third-party fees -- which can include costs for appraisals, credit reports, and/or a settlement lawyer, among others -- to $3,741 this year from $2,739 a year ago. Some say the fees themselves actually have not grown but rather that lenders are quoting more accurate estimates because of a new rule that leaves them on the hook for the difference between estimated and actual closing costs. The rule applies to the good-faith estimate provided by lenders pre-settlement, and HUD Deputy Assistant Director Vicki Bott says it protects consumers by deterring lenders from proffering "low-ball" numbers. Lenders also are investing more in auditors, inspectors and other compliance personnel to ensure accurate quotes -- which in turn may have inflated costs.
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