Figures don't lie, but liars figure!

It is never so true as in "The Good Faith Estimate!" If that weren't bad enough for the real estate consumer the liars' figures get exponentially distorted, when applied to the "Truth In Lending" form! These are government mandated disclosures that lend an air of respectability that totally missleads the consumer! That air is better described as lender flatulence, it reaches it's most offensive odor with the "Annual Percentage Rate" (the proverbial, APR)!

This is the first in a short series where we are going to take a line by line look at the "Good Faith Estimate" and the "Truth in Lending" forms, with an editorial at both ends.

Only a bureaucracy could take such a good, nobel idea as "Reg. Z" witch tries to simplified borrowing and do no such thing! Only a congressman could have come up with the title "Truth in Lending."

It is important to understand each line in the "Good Faith Estimate" although as you will learn there are only a few that you should be concerned with. When we get to the "Truth in Lending' disclosure we'll go beyond its' similarity to a four hole out house and show you the valuable information that comes after the four holes.

Even with a well done "Good Faith Estimate" and a correct "Truth in Lending" form the consumer has no easy way of comparing loans. If the poor consumer looks in the four boxes near the top of a "Truth in Lending" form, he doesn't find "Truth" but rather he finds the same as if he were looking into the holes of an out house!

Bill

William J Archambault Jr

The Real Estate Investment Institute