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New Good Faith Estimate 2010 Form

Reblogger Sandra Cummings
Real Estate Agent with William Raveis Real Estate

 

The following is some very important information regarding changes to the Good Faith Estimate Form that every home buyer should be aware of. This was written by my friend George Souto a Loan Officer at Mccue Mortgage.

 

Original content by George Souto NMLS #65149

The new Good Faith Estimate 2010 Form is now officially in affect.  This new form became affective on January 1, 2010, and will in many ways change the way Lenders have been doing things.  The new Good Faith Estimate 2010 Form will have both a positive and negative impact on both the Borrower and the Lender.

The positive is that the new Good Faith Estimate 2010 Form will now require ALL Lenders to use the same format.  In the past it was some times difficult for a Borrower to compare loan costs between Lenders, because the costs were disclosed and broken down differently from one Lender to another.  Now everyone will have to do it the same way and use the same form.  The new Good Faith Estimate 2010 Form also will prevent Lenders from changing certain costs that are originally listed on the new Good Faith Estimate 2010 Form, I will list these later.  The new Good Faith Estimate 2010 Form will also have an impact on the HUD-1, because now what was listed on the new Good Faith Estimate 2010 Form will have to be compared to that actual cost on the last page of the HUD-1.  These are all positive changes that the new Good Faith Estimate 2010 Form will have in my opinion.

What isn't positive about the new Good Faith Estimate 2010 Form in my opinion is that it does not break costs down like the Good Faith Estimate Form that I have right now, instead groups costs together in several places.  The new Good Faith Estimate 2010 Form will also cause Lenders to possibly not give Borrowers a Good Faith Estimate at the time that they are Pre-Approving a Borrower, because it locks them into certain things that they can't change later.  It is good that Lenders can't  just change their things, but there are situations that it might be out of their control why a cost changed and now the Lender is locked into what was originally disclosed under a different set of circumstances.  For this reason Lenders may now choose to not issue a Good Faith Estimate until they are actually putting a loan into process.  This in my opinion will make it more difficult for Borrowers to compare costs between Lenders prior to submitting a loan.

I am going to stop this post at this point, and continue it in one or two more posts this week.  What I have found over a period of time here on ActiveRain, is that if you make a blog to long, fewer people read it.  This information is too important, and will have such a big impact on Borrowers as well as everyone else in this industry, that I feel I need to present it in such a way that others will take the time to read, and not be turned off by its lenght.

So I hope that those that are reading this blog now will take the time to return and read the continuing blogs on the new Good FFaith Estimate 2010 Form.  I promise that it will not be a waste of your time to do so.

 

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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

Comments(9)

Susan Mangigian
RE/MAX Preferred - West Chester, PA
Chester & Delaware County Homes, Delaware and Ches

Our title officer was kind enough to go over the GFE and the new HUD1 with us about one week before Christmas.  thanks for sharing this.  xxoo

Jan 06, 2010 11:19 AM
Sandra Cummings
William Raveis Real Estate - Guilford, CT
Real Estate Agent, Guilford Connecticut

Hi Susan - Good seeing you..My hope is that borrowers will find this information useful. MWA!

Jan 06, 2010 11:38 AM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Sandra, great to see you in the Rain again, and thank you for the re-blog.

By the way I like the new picture :)

Jan 06, 2010 01:20 PM
Sandra Cummings
William Raveis Real Estate - Guilford, CT
Real Estate Agent, Guilford Connecticut

George - Nice seeing you again too...No thanks needed, George, it is good information.

 

Jan 06, 2010 10:10 PM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Hey Sandra,
That's a very great information to share, I was telling George about it on his 3 parts of this good faith info.
Take care and nice to see you.

 

Jan 08, 2010 04:01 PM
Sandra Cummings
William Raveis Real Estate - Guilford, CT
Real Estate Agent, Guilford Connecticut

Ray - It is always a pleasure seeing you too.

Jan 14, 2010 11:53 PM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

:)

Jan 19, 2010 03:42 PM
Adam Malachi
A 2 Z Realty LLC - Castle Rock, CO
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

Excellent post! Very good information's! No more playing with figures!

Thank you very much for sharing!

Adam

Mar 28, 2010 06:23 AM
Sandra Cummings
William Raveis Real Estate - Guilford, CT
Real Estate Agent, Guilford Connecticut

Thank you for your comment Adam, for more information on the subject, check out George Souto, he is a wealth of mortgage information

Mar 28, 2010 09:46 AM