"Know Before You Owe," brought to you by the Bureau of Consumer Financial Protection

Mortgage and Lending with Christensen Financial Mortgage 385907

Catchty, aint it.

Okay to be perfectly clear who is the Bureau of Consumer Financial Protection is, or the CFPB as it is also known.

Here's from the Treasury website;

the Bureau of Consumer Financial protection will be an independent bureau within the Federal Reserve System that will help empower consumers with the information they need to make financial decisions that are best for them and their families.

Sounds pretty good, right? Only in America can you be both "independent," and "within."

Know Before You Owe

What are they referencing, and who are they protecting you from?

First, I must ask, please don't kill the messenger.

What they are attempting to do is to create a simpler and easier to understand...gulp...mortgage disclosure, and in this case the disclosure is the GFE. You may ask,

didn't HUD just do that, or at least don't they think they just did that?

Well right you are. So who are they attempting to protect us from


You can find examples of the 2 new and improved proposals at  www.consumerfinance.gov

Here's my opinion, for what it's worth.

The nicest thing about the 2 new propsed discloures is that they're only 2 pages (as opposed to the current 3 pages), but I've got to tell you as for content I'm really not seeing a big difference. As far as helping you

Know Before You Owe

I don't see how these new forms accomplish that to any greater degree than the old/new forms, which I don't believe were any improvement over the 1 page GFE. But what do I know? Well here's what. We have a new govern(mental) agency creating the appearance that they are doing something constructive, when in essence they are not.

If you really want to know what you will be bringing to the closing table check out the "details of purchase" on your 1003, that's the mortgage application.

Let me conclude with this. If you really, really, really want to know what you will owe, and what it's going to cost to acquire the mortgage, get yourself a experienced, knowledgable, honest Loan Officer, up front, and ask a lot of questions.

If you're a first time homebuyer take one of the standard 8 hour homebuyer education classes, and if you think 8 hours is too long, than I'm going to question that you want to "know before you owe."

One final thought; as for new disclosures

Please nooooo, not that, we already have enough tools for you to

Know Before You Owe 


Comments (5)

Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good post Jay. A good amount of information simply stated.

May 20, 2011 03:34 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Thanks Sheila,

i'm certainly not against an informed consumer, actually i'm very much in favor, but these changes just for changes and/or appearance sake. enough.


May 20, 2011 03:38 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

The old GFE was so much better than the new one(s)  it gave a buyer EVERYTHING they needed, it was even better for us in the industry.  The only good part of the new 3 page form is the 1st page that says "this is the mortgage I am applying for"  but how they came up with a form that doesnt give a total of what is needed in a transaction, leaves out some fees, and not even a signature line???



May 20, 2011 03:42 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

I'm with you the buyer needs to take the time to educate themselves and have a qualified lender who will be able to answer any questions they may have.

May 20, 2011 03:53 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!


the "fees worksheet" looks a lot like the original 1 page gfe. it's a straight line itemized total of costs. i like it much better than today's gfe.


unfortunately, sometimes they don't want to take the time up front, and don't realize how much they should have, until after the closing takes place.



May 20, 2011 04:13 AM