New Good Faith Estimate (GFE)

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

The Consumer Finance Protection Bureau (CFPB) has finally announced the date of when the much awaited New Good Faith Estimate (GFE) will go into effect.  After designing and redesigning as well as testing the new GFE for over two years the CFPB has finally determined the new GFE will go into effect on August 15, 2015.  This means we will continue to use existing GFE for another year and half years, unless the CFPB makes provisions for Lenders to implement the new GFE earlier if they choose.  The new GFE will also take on a new name on August 15, 2015, it will be re-named "Loan Estimate". 

I have seen the new GFE and it is a major improvement over the present one, this is a LINK to the new GFE if you would like to see what a complete one will look like.  For once it appears the CFPB has done something right, and I hope an option for Lenders to implement it before August 15, 2015 is granted. 

I have never liked the present GFE, it is three page long, but is less transparent than the previous GFE which was only one page long (new GFE will also be 3 pages).  There are a number of reasons I feel the present GFE was a step backwards from the previous one, and why I feel the new GFE is a major improvement.  For example:

  • The present GFE does not state anywhere on it the Loan Program the Borrower is applying for.  The previous GFE listed the Loan Program and the new GFE will disclose the Loan Program as well.
  • The present GFE does not disclose the full monthly mortgage payment, it only discloses the Principle & Interest, and PMI/MI, and not the Monthly Escrow payments for Taxes, and Homeowners Insurance in the monthly mortgage payment.  The previous GFE disclosed the total monthly payment (P&I, PMI/MI, and Taxes & Insurance) and so will the new GFE.
  • The present GFE does not break down each cost on separate lines like the previous GFE.  The present GFE has two major areas it groups cost together.
    • Attorney Fees, and Lenders Title Insurance are stated as one figure.
    • Escrows for Taxes and Homeowners Insurance are also given as one figure and not broken apart.
  • The new GFE will have a separate line for each cost, and no longer group costs together.
  • With the implementation of the present GFE Lenders were mandated to provide a Borrower with a GFE within 3 days of having the six pieces of information that the CFPB considers an application.  However, there is no signature or date line on the GFE for the Borrower to acknowledge receipt of the GFE.  The CFPB continues to mandate a GFE be given to the Borrower within 3 days of the Lender having the six pieces of information the CFPB considers an application, but now there will be a signature and date line.

Along with the new GFE a new "Closing Disclosure will replace the present HUD-1 and Truth In Lending (TIL) on August 15, 2015.  I will provide more information on those forms once I have more information on them.

As you can see I am a fan of The New Good Faith Estimate (GFE), and hope it is implemented sooner than August 15, 2015.  I have been very critical of the CFPB, but this is one time I have to admit it appears they have gotten it right for a change.



 Info about the author:

George Souto NMLS# 65149 is a Loan Originator 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, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or


Re-Blogged 7 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 02/07/2014 07:14 PM
  2. Tammie White, Broker 02/08/2014 06:04 AM
  3. Praful Thakkar 02/08/2014 02:18 PM
  4. Lynn B. Friedman 02/08/2014 03:02 PM
  5. Ritu Desai 02/08/2014 08:28 PM
  6. Joni Bailey 02/09/2014 03:03 AM
  7. Michael Dagner 03/06/2014 01:17 PM
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David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Thanks for that link George I am going to go check it out now. Agree todays GFE is ridiculous and why it doesnt match the TIL is even more ridiculous

Feb 08, 2014 08:11 AM #14
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It is so different. I kept hearing that we wouldn't recognize it. The question is, will this be it for awhile or will they revert to the older tried and true?

Feb 08, 2014 09:48 AM #15
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

George, for many buyers, the most important question is what their monthly payment will be.  I'm glad the new loan estimate will make it easier for them to find this information.

Feb 08, 2014 10:07 AM #16
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

Thank you, George! I will share this (re-blog) great information! Thank you for allowing us to do so! :)

Feb 08, 2014 12:21 PM #17
Rosie Moore
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX

George, what would we do without you? I never knew there were plans to revamp the GFE. Thanks for sharing this news with us. 

Feb 08, 2014 12:22 PM #18
Kim Norton
CREATIV Real Estate Solutions - Bentonville, AR
Selling Northwest Arkansas

Thank you for sharing this vital information with us!

Feb 08, 2014 01:06 PM #19
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

George, your posts always keep me updated on all the changes in mortgage industry. Thanks a lot! Bookmarked for sure!

Feb 08, 2014 02:16 PM #20
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Once you sign on... gotta keep the faith and integrity. :)


Love and light,


Feb 08, 2014 03:03 PM #21
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George thanks again for sharing this information and the link to the new GFE.  Sounds like good updates ut why did it have to take so long?.....:)

Feb 08, 2014 03:35 PM #22
Jeffrey Hogue
Weichert Realtors Neighborhood One - Wyomissing, PA
Berks County Real Estate Pro

Thank you for the update.

Feb 08, 2014 03:43 PM #23
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the information. It will be nice if lenders will have the option to use it sooner.

Feb 08, 2014 07:35 PM #24
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

The current version of the GFE is the visual representation of all that is wrong with the forces that govern mortgage lending.  It takes three pages to represent what the rest of us could convey in one.  It leaves the reader bewildered and more confused than if he'd not read the document in the first place and it puts the lending industry in the awkward position of having to convey information in a format that is counterintuitive.

Any change is an improvement, in my opinion.  Let's start here, but if we need revisions, let's have first-grade teachers write them instead of lawyers.

Great post.

Feb 08, 2014 09:31 PM #25
Brad Lauritzen
Santiago Financial, Inc. - Riverside, CA
Manufactured & Mobile Home Lending

This is soooooo Federal Government. It takes them two years to redesign a form that we could do in one day and then another year and half to implement. 

Feb 08, 2014 10:59 PM #26
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate


Thanks for the update. Nice to know that the new GFE will be an improvement.

Feb 08, 2014 11:09 PM #27
Dwight Puntigan
DRP Realty, LLC - Saint Peters, MO
Dwight Puntigan

I appreciate the comparison.

Feb 09, 2014 12:40 AM #28
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Thank you very much for letting us know about the change-AGAIN. Hopefully they will get it right this time.

Feb 09, 2014 06:02 AM #29
Barbara Altieri
Kinard Realty Group - RealtyQuest Team, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- Why the long wait? Not implemented till 8/15?

Feb 09, 2014 10:08 AM #30
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Hi George: I would second Barbara A.'s question. Why the long wait? Anyway, thanks for the update. I hope to see a clearer copy Georgie..

Feb 10, 2014 07:00 AM #31
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

George a nice change, the form is really easy to read, the sooner the better that they get this out.

Feb 10, 2014 11:55 PM #32
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

As long as it is easier then I am thrilled. Be interesting to see the final product and if it matches whats here.

Feb 14, 2014 12:10 PM #33
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