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The New Good Faith Estimate:  “GFE 2010”

US Department of Housing and Urban Development (HUD) has made some major changes to the Federal lending laws which include a new “Industry Standardized” Good Faith Estimate.  All loan originators including banks, mortgage lenders and mortgage brokers were required on January 1, 2010 to utilize the new GFE 2010.

One of the main reasons HUD initiated this GFE 2010 was to make it easier for consumers to shop for a home loan. One change made was consolidating closing cost into fewer categories to prevent junk fees from being hidden.

Consumers have up to 10 days to shop for a loan and compare “apples to apples”. Most foods have an expiration date, now so does the new GFE 2010.  

Another advantage is the consumer’s ability to obtain a credit. Don’t confuse this credit to a “Seller’s credit” sometimes seen in a purchase contract.  This is a “Lender’s Credit”.

As simple as HUD tried to make this new GFE 2010, many are still confused. That’s where we come in.  We are here to educate our clients and help analyze your personal GFE 2010.

Click Here: Http://hud.gov/content/releases/goodfaithestimate.pdf