With a month under our belts, the new GFE is not making a hit with the consumers. I handed one to a borrower and told them that HUD suggests they shop three other mortgage companies,banks or credit unions. They looked at me as if I was crazy. Then they asked "Do I really have to do this to get a loan?" I told them they did not but it was strongly suggested by HUD. They said that is crazy. Then they asked me how much I have to bring to closing and what my actual payment will be. Of course the new GFE does not tell you that, you have to use another type non-gfe-gfe to give your borrowers the actual costs. HUD does not want anyone changing the forms, so two weeks ago a borrower sent me a form that a builder used that was completely changed. SO much for going by the rules. The form has created extreme confusion and added work by the lenders and the loan officers. It is only going to get more tedious as the kinks in the LOS systems and lenders interpretations constantly change.
The real loser is the borrower. Buying a home is a stressful situation. Giving out confusing and conflicting documents does not ease anyone. According to several articles about this, most people are disclosing much higher than needed so the fees tests at the time of closing will not be over the ten percent tolerance. Good luck to all. Clarity was HUD's main goal. This time I do not think they scored a touchdown.
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