Beginning January 1, 2010, lenders will be providing new good faith estimates to their borrowers. The new GFE is another step by the federal government to hold lenders accountable.
The changes have been designed to make the loan process more transparent for the borrower.
In short, this new national reform should:
*Provide more timely and effective disclosures regarding settlement costs for consumers.
*Provide a shopping tool for consumers.
*Restrict or eliminate unjustified increases in settlement costs between the GFE and the HUD-1.
*Force lenders to better manage and anticipate settlement costs, including third party fees.
*Prohibit intentional low-balling of good faith estimates.