Fed Making the Mortgage-Lending Process Clearer

During the home buying process, a lender is required to give their buyer a “Good Faith Estimate” within 3 days of filling out their loan application.  It discloses loan terms and costs home buyers might expect to pay when they get to the closing table.  One would think this would be a document that buyers paid extreme attention to before proceeding forward in their purchase, but the current mortgage crisis has led us to believe that maybe buyers haven’t been cautious with details…. OR maybe the document is too overwhelming and confusing for a person to understand??  I feel that if we are going to make steps in the right direction with fair lending practices, it is important for buyers to be given the truth!

 The Fed now appears to have given birth to a new piece of paperwork that might accomplish what it’s supposed to do– make the mortgage-lending process clearer for consumers!  You can look over the proposed 4-page Good Faith Estimate at www.hud.gov under “Read HUD’s Mortgage Reform”.

 Stay tuned for updates on this story!