New GFE and HUD Changes

Posted on December 15, 2009

Many of you may have already heard that starting Jan 1st, 2010 the lending world is undergoing even more change.  The current Good Faith Estimate (GFE) and the HUD-1 Settlement Statement are being revamped.  The old versions will be a thing of the past and everyone in this industry must adapt and adapt fast.  There will be a window of time to allow for everyone to become accustomed to the new laws before the hammer comes down on us hard, but Flat Branch Home Loans, Inc. wants to be ready on day 1!  We pride ourselves on staying on top of these changes so that our service is top notch.  While there will be a learning curve, out goal is to keep thing rolling so we don't miss a beat.  To keep it very brief the whole point of  these changes was to create transparency and make it easier for a borrower to compare their fees and make sure nothing is changing.  As we all know, obstacles arise in transactions all the time and these are deemed a "change in circumstance".  If one of these come up, we are allowed to make adjustments and re-disclose to you.  The change must be legitimate.  It can not be because we made a mistake.  If we failed to list a fee on the GFE, then we can't add it.  We eat that cost!  All in all these changes are good and as with most of the changes in our industry over the last few years, the intentions were good.  They just went a bit overboard and we all will have to deal with it.  As a company Flat Branch Home Loans continues to educate ourselves on these changes and will keep you informed on any developments.

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