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New Good Faith Estimate and HUD-1 Forms

By
Real Estate Attorney with Mozley, Finlayson & Loggins LLP

Newsflash!  The United States Department of Housing and Urban Development has released its new rules concerning the Good Faith Estimate - 341 PAGES!  Good Gravy!

I have begun to read the rule.  It is part of what I do for a living.  Do we really need 341 pages of self serving justification to explain why we are changing the GFE from one page to three pages, correlating lines on the HUD-1 to lines on the GFE, and mandating another page to the HUD-1 explaining terms of the mortgage financing?

All this to promote competition and to protect consumers.  In case some of you haven't noticed, when was the last time anyone was able to actually RAISE what they charged to make or close a loan?  I know that competition (oh - right, a market term) in the settlement services business in my state has been driving down attorney's fees for years.  The same can be said for origination fees and real estate commissions.

The really sad thing is that the new GFE and HUD-1 do little or nothing that the old forms did not do.  They really aren't much of an improvement.

The galling part is that the government of the United States of America ("We hold these truths to be self evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.") presumes to tell business men and women what they can charge to provide a service and to allow a borrower to use the lender's money - a perfectly legal activity.  What part of this am I missing?  What responsibility does the consumer have to protect his own interest?  People have been borrowing money foolishly since the dawn of recorded history - Does the government of the United States of America, by and through the agency of the Department of Housing and Urban Development presume to be able to magically solve that problem through the issuance of a 341 page manifesto?

This is all symptomatic of the larger issues we face as a democratic republic.  Our representatives no longer serve We the People. 

I know this is more rant than informative discourse.  I do remain hopeful for the future of our country.  However, I find that I have to pray a little harder each day to keep that hope alive.

Comments(1)

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Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Brian,  Is the new rule aimed just at your state or is it a national guideline ?

Nov 13, 2008 05:08 AM