New HUD Regulation to Save Nearly $700
Beginning 01-01-2010 HUD requires lenders and mortgage brokers to give a borrower a standard Good Faith Estimate. From 1974, few changes have been made on the process borrowers use to buy & refinance homes. HUD’s reform will improve disclosure of the key loan terms and closing costs consumers pay when they buy or refinance their home.
HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.
In announcing HUD’s final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action. (Read Preston’s remarks)
“It has been a long road but today we can finally announce a better way to buy homes in America,” said Preston. “Consumers need and deserve to know what they’re getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs.”
Read the article about HUD 08-175
