National Association of Realtors Government Affairs is interviewed by Realtor Magazine about the New GFE. The video is titled Making Sense of the the New GFE and HUD1. There may be confusion about the new form but NAR provides resources at www.REALTOR.org/government_affairs/respa. If REALTORS have questions, they can email respa@realtor.org.
The good faith estimate was designed to disclose all costs and simplify the process and help consumers shop for charges. This is an attempt to more easily track changes from the GFE from the lender to the HUD-1at the time of closing. Good communication is encouraged between the closing agent, REALTOR, and lender. Watch the GOOD FAITH ESTIMATE/HUD1 VIDEO.
Like any government form, you may need a class to fill out this counter intuitive paperwork. Note he talks about the buckets and tolerances A. Zero Tolerance B. 10% Tolerance C. No Tolerance.
Bottom line, if lenders' costs are above tolerances, there is a 30 day cure law. Lender issues check back to borrower. My question, can lender walk from deal with no penalty and leave the borrower at the closing table with NO money? This question was emailed. Stay tuned for response.
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