HUD has plans for revising lender rules & regulations to make it a lot easier for prospective mortgagees (Buyers) to review any and all loan “Good Faith Estimates” and fully understand the mortgage product that they will be receiving. The Link to the Article is here…..//http://www.housingwire.com/2008/11/12/hud-revises-respa-adopts-good-faith-estimate/
The Good Faith Estimate format proposed is located here…..//http://www.hud.gov/content/releases/goodfaithestimate.pdf .
In my opinion, this is all good. Consumers will be able to completely understand their loan…whether or not the interest rate can go up…if they’re actually getting into a negative amortization product…or have a pre-payment penalty. Since all lenders will be required to use this form, prospective Borrowers can compare line by line the different loans quoted to them. The changes identified in the first post are not due to change until January of 2010.