Posts Tagged ‘Conventional Loans’

There is a new Good Faith Estimate (GFE) requirement for lenders to provide to consumers starting Jan.1 (2010). This is the “long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers” announced by HUD on Nov. 12. It has taken a lot of time to announce the implemention and how it will affect lenders and consumers after the start date.

According to HUD Secretary Steve Preston, “…. the mortgage crisis was fueled in part by people agreeing to mortgages that they ultimately could not afford. In some cases, people didn’t understand or know that their mortgages could result in large payment increasesafter just two or three years. Others did not recognize the total costs that come with home ownership. And others paid higher loan origination and closing costs simply because they did not know about other affordable options.” (emphasis added) Read More