New Good Faith Estimate

Starting on 1/1/2010, paperwork for new loans will look a little different. The ever-popular Good Faith Estimate has received a face lift. Despite popular opinion in the mortgage industry, this is not the end of the world. In fact, it is a very good and positive thing for homebuyers and for loan officers. Let me explain. This new GFE and the new rules that come along with it have created transparency in the home loan process. Buyers should no longer be concerned that they do not know what is going to happen when they go to close their loan because loan officers can no longer do a bait-and-switch or add unwarranted fees at the last minute. The positives to home buyers is obvious. The positives for loan officers comes from the fact that this has leveled the playing field. Unscrupulous loan officers can no longer pull some of the shenanigans that I described above. This will only help the better loan officers and create a stronger industry.