Comments on: HUD Passes RESPA Reform, New GFE Coming in 2010

By: Bill Ladd

Bill Ladd — Thu, 06 Aug 2009 03:18:22 +0000

BLAH BLAH, Only HUD could spend this time, effort, and tax payer $$$$ to accomplish NOTHING.
Clarity, Transparency, and Simplicity Who ARE THEY KIDDING? I HAVE BEEN A REAL ESTATE AGENT FOR 25 YEARS. I GUARANTEE YOU THAT REAL ESTATE AGENTS INFLUENCE THE BUYERS DECISION TOWARD A LENDER 70% OF THE TIME.

THIS IS AND WILL BE A RELATIONSHIP BUSINESS AND INDUSTRY, BUILT ON TIME AND TRUST.
AT THE END OF THE DAY NOTHING HAS CHANGED. I HAVE NEVER EVER HAD A SINGLE BUYER TELL ME THEY WERE GLAD THEY SHOPPED THEIR LOAN.

By: kelly

kelly — Thu, 01 Jan 2009 00:14:47 +0000

Nice form. I actually like that some of the line items are condensed. If LO’s know their business correctly this should be a great improvement for them to help explain to their clients. Most of my LO’s know the average cost of escrow fees from different companies based on refi or purchase. They don’t change drastically! Also, every LO should carry a title fee sheet and most title companies are usually within $50.00 to $100.00 from each other so the GFE should be pretty accurate. My Loan Officers always re-disclose if we find out that there is a fee different as the process moves along than when it was first initiated with the client.

By: sam tabatabai

sam tabatabai — Wed, 24 Dec 2008 05:36:35 +0000

I agree with Rhonda, all this means nothing unless the real measurs are put in place. As a seasoned Mortgage officer I know there is so many ways a client could still be cheated out of their money. We all know these forms and when we look at them we know what to look for but imagine the first time you were buying a home, would you undrestand all this? This whole GFE business gives the people the wrong sense of security. A GFE should be followed by another form when the real deal is drawn that is called the GFS, Good Faith Statment which will change by one dime at the end and if there is more cost, the mortgage persond pays.

By: David Nelson

David Nelson — Wed, 24 Dec 2008 00:36:20 +0000

Mine is not question why be mine is to do or die. Clean up the mess so we can get on with life!!

By: Jim G

Jim G — Sat, 20 Dec 2008 09:09:51 +0000

“Mortgage brokers and the loan originators licensed under a broker now owe fiduciary duties to their clients.”

“LOs who work for a consumer loan company or a bank owe no such duties.”

Owing something and delivering on it are obviously two different things.

Saying you are going to protect the hens is meaningless if the fox keeps raiding the hen house and no one does anything about it.

“Wow. I don’t think they could possibly break down the GFE (Good Faith Estimate – NOT – Girl Friend Experience) information any clearer. Add in an explaination and disclosure of YSP and I don’t think anyone could legitamitly claim they didn’t understand the terms of their loan.”

Wow! So all that has been missing all this time was a simple 3 page (I mis- typed 2 pages earlier) GFE form and the world is now a better place.

Maybe the poster is kidding on this one, as the comments are at best laughable and can’t be taken seriously.

For one, I don’t think bundling all the different mortgage broker/mortgage banker/wholesale lender fees under “Our origination charge” makes sense. This doesn’t simplify matters, it complicates them (if you don’t know why you probably haven’t been in the business very long).

Also, why is “Title services and lender’s title insurance” listed separately when it will need to be entered again in “6. Required services that you can shop for”?

And why isn’t “Settlement/closing/escrow” fees listed on the form? Is that expected to be included in “4. Title services and lender’s title insurance” or will that go separately in “Required services that you can shop for”?

Then we come to my favorite the Tradeoff Table. If this isn’t a monkey wrench, I don’t know what is.

Can anyone explain to me, why in the world would a government required form like this include something that is an OPTION? This will only confound and confuse both borrow and lender alike.

Some LOs will complete just the loan in this GFE, others might add one other loan for comparison and others will complete all three.

If they do complete all three, how are they going to decide how much of a premium rate and how much of a discount rate they should use? What we now end up with is a standard form that is anything but standard.

The shopping chart is completely useless and should be deleted. This is far from what someone needs when comparing loans. You might as well get a dartboard and a blindfold if you use their chart because either method has about the same merit.

By: Toby

Toby — Sat, 20 Dec 2008 05:42:28 +0000

Wow. I don’t think they could possibly break down the GFE (Good Faith Estimate – NOT – Girl Friend Experience) information any clearer. Add in an explaination and disclosure of YSP and I don’t think anyone could legitamitly claim they didn’t understand the terms of their loan.

By: Jillayne Schlicke

Jillayne Schlicke — Fri, 19 Dec 2008 22:55:21 +0000

“Unless there are strict laws enforcing originator/lender behavior amont other things, the new GFE will end up being worth about what the cost of the paper it is written on.”

Mortgage brokers and the loan originators licensed under a broker now owe fiduciary duties to their clients.

LOs who work for a consumer loan company or a bank owe no such duties.

Just exchanged an instant message from a friend trying to refi. Both banks who are competing for his business have not yet provided a GFE or TIL and it’s past the 3 day mark.

By: Jim G

Jim G — Fri, 19 Dec 2008 06:41:33 +0000

This was a” close but no cigar” attempt to make what is nothing more than a futile consumer endeavor look more promising.

Unless there are strict laws enforcing originator/lender behavior amont other things, the new GFE will end up being worth about what the cost of the paper it is written on.

Let’s come clean here. First of all, the business of originating a home loan is not rocket science, so why should the consumer pay thousands of $$ to the person taking their application and/or the company they work for.

I have heard every groundless reason for the excessive fees charged the borrower to get a loan. The truth is the cost should be fixed which would eliminate all the manipulation and deceptions that go on and will continue to go on this sordid business.

Pay an originator a flat fee of say $500 with another $300 to the company they are with. That would further limit the number of predators and incompetents out there and lead to a more productive system.

With an easy entry, little regulation or enforcement and excessive payouts, what makes anyone think a new 2 page form is going to solve the problem?

By: Luis Diaz

Luis Diaz — Fri, 19 Dec 2008 03:49:40 +0000

What do I like of this GFE ?, sincelerly, the effort to control and disclose details to a prospect borrower. Although, I will consider this more as a paper work document to ensure that the Broker/LO is desclosing and informing the prospect Borrower to make an informed decision. I belive that one page with the same kind of easy presentation will work better for a prospect borrower who expects a simple way to understand the details of his/her future loan.

Where’s the Yield Spread Premium (YSP)?, if I am not mistaken, the YSP will be disclosed on the second page bolet No. 2. first squere to be checked…. it reads: The “CREDIT” of charge for the interest rate of _____% is included in “Our origination charge”.

By: Brad Toft

Brad Toft — Fri, 05 Dec 2008 16:26:19 +0000

Statement of the obvious is that this is a vast improvement over our current version. However, customers still need to read them and that can only be facilitated by mortgage consultants who make it a practice to review them in detail with the customer. More government is not the solution alone. Higher standards within mortgage companies is.