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New Mortgage Disclosure Forms Maybe On The Way

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

New Mortgage Disclosure Forms Maybe On The Way.  It appears that the Dodd-Frank Act may actually have something in it that makes sense.  A component of the Dodd-Frank Act directs the Consumer Financial Protection Bureau (CFPB) to combined and streamline “mortgage disclosure requirements into a single uniform document”  that are required by the Real Estate Settlement Procedures Act and Truth-In-Lending Act.  I interpret that as combining the Good Faith Estimate (GFE) and Truth-In-Lending (TIL) disclosures into one document that actually makes sense to Borrowers, and clearly discloses ALL fees.

About two years ago, both the GFE and TIL were expanded from one page documents, to a three page document for the GFE, and a two page document for the TIL.  Now you would think that more pages would equal more disclosure, but in fact the opposite occurred especially with the GFE.  Despite going from a one page to a three page document, the GFE became less transparent than the one page document.  That is because on the one page document ALL fees were listed, but on the three page document some fees are combined into one single figure.  For example Attorney fees, and Title Insurance are combined into one figure, as are taxes and homeowner insurance being escrowed.  The new GFE also does not show the total monthly payment, it only shows principal & interest, plus PMI/MI.  OH and by the way the government also did not think that it was important to show the Loan Program on this document.  

According to CFPB Director, Richard Cordray, a panel will be created “to gather the input of the people who will be affected by our rules.”  Hopefully that group of people will include, people like Loan Originators, who are familiar with the deficiencies of these documents, and can actually contribute to creating a new document that will accomplish what the new document is suppose to do.

If the this panel is able to accomplish what it is be directed to do, maybe we will finally see something positive from the Dodd-Frank Act.

 


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 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Posted by

George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
My Blog

I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.

 

Comments (7)

Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, there is nothing wrong with full disclosure, and making the process of getting a loan easier and more transparent

Feb 22, 2012 06:38 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

As you well know I have been very critical of Dodd-Frank and feel strongly that this bill is bad for our country. I lso think that the new good faith estimate and itemization has done nothing to improve the public's ability to understand the mortgage process and the numbers. 

 

Feb 22, 2012 08:43 AM
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

George~One can only hope that they'll listen to those who have to deal with this on a day to day basis. But I don't have a lot of confidence in government panels or study groups.

Have an awesome day!

Feb 22, 2012 08:44 AM
Kevin A. Guttman-Author, ReverseMortgageSpecialist
NMLS #384936 - Colorado Springs, CO
877-251-9709

George, as you know these new forms in the last couple of years have only confused borrowers! If the gov't can simplify any of it, I'm all for it!

Feb 22, 2012 09:58 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

George - Thank you for the heads up.  I can always count on you to find out what is new or potentially coming down the pike.

Feb 22, 2012 10:06 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

We haven't found the new forms useful, only more confusing for borrowers! 

BTW, I just subscribed to your blog as I am growing my North American and international referral base. I specialize in Silicon Valley, specifically San Jose, Saratoga and Cupertino, Calif. (home of Apple Computer). You are one of the first ActiveRain bloggers I subscribed to in your area. I hope we can help each other grow our real estate businesses in 2012 and beyond. You can read my blog at www.activerain.com/results.

Feb 22, 2012 11:46 AM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

George, that is great news! Anything that makes the process clearer for the client is what we need!

Feb 22, 2012 08:29 PM