New disclosure regulations have gone into effect and, I'm not clear the problem has been solved. Having been in the business for 22 years, I have had lots of opportunities to work with some really great loan officers who were fully knowledgeable about their products and associated fees. Like there are some less than capable Realtors, there are also some loan officers who deliberately or inadvertently understate the projected closing fees.
As I understand, the new regulations are not particularly helpful in many different situations unless there is actually a contract in place for a specific property. It appears that loan officers are put increasingly in a defensive position and are now resorting to "worksheets" and "loan scenario" forms with no legal requirements for accuracy. In effect, they are substitutes for the new GFE's, wide open to lowballing and bait-and-switch games under the wrong hands.
Because of the new regulations, lenders are also being forced by HUD to provide accurate estimates on services or charges in the transaction they cannot always lay down with accuracy - especially those involving title and settlement services. Those are always going to vary with the settlement agent and the insurance provider.
Until you have a contract and decide on a settlement agent, I'm not clear lenders can perform as the regulations require. If your buyer is shopping mortgage options, let them be clear about what they may or may not receive with a worksheet or loan scenario.
I would appreciate loan officers weighing in. Am I being too harsh, is this going to work or are we back to where we were before the regulations?
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA 22207
Office (703)538-2566
davidrose@mris.com
www.Highland Agents.com
It's a great day to be of service to others!
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