RESPA Reform has required that effective January 1, 2010 all lenders use a revised Good Faith Estimate (GFE) for all loan applications. Additionally all Settlement Attorneys will also use a new HUD-1, which compares the revised GFE to the actual closing costs. These new forms will allow the Buyer to compare and shop for mortgage financing and hopefully limit any increases in the money needed to close from the lender’s original estimate. Needless to say there are going to be numerous issues and problems as these new rules are implemented. These new forms will have a tremendous effect on representing the Buyer in any transaction involving a mortgage loan.
Everyone needs to better understand the issues, the potential problems and hopefully the benefits. There are classes and literature available explaining these changes. If you need any further information about the new GFE and HUD-1 contact your favorite lender or attorney.
Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.