Comments on: HUD Launches Simplified Good Faith Estimate and HUD-1 Forms http://www.doughroller.net/mortgages/new-good-faith-estimate-hud1-forms/ Money Management and Personal Finance | The Dough Roller Sun, 12 Feb 2012 23:24:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: D Welsh http://www.doughroller.net/mortgages/new-good-faith-estimate-hud1-forms/comment-page-1/#comment-30931 D Welsh Thu, 31 Mar 2011 20:57:25 +0000 http://www.doughroller.net/?p=10584#comment-30931 I've been looking at the new Good Faith Estimate and found several problems. 1. there is nothing to keep banks from inflating the GFE number so when they show actual they always come in under the original estimate. 2. the instructions are not as clear as they need to be for completing the form. I’ve been looking at the new Good Faith Estimate and found several problems.
1. there is nothing to keep banks from inflating the GFE number so when they show actual they always come in under the original estimate.
2. the instructions are not as clear as they need to be for completing the form.

]]> By: James Johnson http://www.doughroller.net/mortgages/new-good-faith-estimate-hud1-forms/comment-page-1/#comment-30601 James Johnson Tue, 22 Mar 2011 16:15:49 +0000 http://www.doughroller.net/?p=10584#comment-30601 What is the proper way to disclose the loan term on a balloon note? Is the amortization period necessary? What is the proper way to disclose the loan term on a balloon note? Is the amortization period necessary?

]]> By: Chris Duncan http://www.doughroller.net/mortgages/new-good-faith-estimate-hud1-forms/comment-page-1/#comment-16756 Chris Duncan Fri, 08 Jan 2010 20:54:41 +0000 http://www.doughroller.net/?p=10584#comment-16756 There are a lot of critical pieces left out of the new form. The most important: 1. The sales price does not appear anywhere. 2. Total monthly payment includes principle, interest, and mortgage insurance, DOES NOT include homeowners insurance and property taxes. 3. Total amount of money required to close. The total "settlement charges" are not accurate because they consider an upfront mortgage insurance premium on FHA and VA loans as part of settlement charges. They, in fact, are financed into the loan which would change the "initial loan amount" because it doesn't provide your "base" loan amount before that is added in. And it does not take into account if the seller is paying any part of buyers closing costs and or prepaid items. 4. And another really important piece: What type of loan I have applied for. Where on 3 pages does it tell you that you have applied for FHA, VA, or conventional? NOWHERE! They say it was designed to ACCURATELY spell out for the consumer what they are getting. But the bottom line is, IT DOESN'T! May be in the right direction, but far from consumers "benefiting". Causes more problems than fix them. There are a lot of critical pieces left out of the new form. The most important:

1. The sales price does not appear anywhere.
2. Total monthly payment includes principle, interest, and mortgage insurance, DOES NOT include homeowners insurance and property taxes.
3. Total amount of money required to close. The total “settlement charges” are not accurate because they consider an upfront mortgage insurance premium on FHA and VA loans as part of settlement charges. They, in fact, are financed into the loan which would change the “initial loan amount” because it doesn’t provide your “base” loan amount before that is added in. And it does not take into account if the seller is paying any part of buyers closing costs and or prepaid items.
4. And another really important piece: What type of loan I have applied for. Where on 3 pages does it tell you that you have applied for FHA, VA, or conventional? NOWHERE!

They say it was designed to ACCURATELY spell out for the consumer what they are getting. But the bottom line is, IT DOESN’T!

May be in the right direction, but far from consumers “benefiting”. Causes more problems than fix them.

]]> By: DR http://www.doughroller.net/mortgages/new-good-faith-estimate-hud1-forms/comment-page-1/#comment-16636 DR Sun, 03 Jan 2010 18:56:12 +0000 http://www.doughroller.net/?p=10584#comment-16636 Evan, I think for some it won't matter, and hopefully they have an honest mortgage broker and a good real estate agent. I do think, however, that the forms a re a big step in the right direction. To me, the best financial regulation are those that seek to inform the consumer, rather than dictate terms to the market. Evan, I think for some it won’t matter, and hopefully they have an honest mortgage broker and a good real estate agent. I do think, however, that the forms a re a big step in the right direction. To me, the best financial regulation are those that seek to inform the consumer, rather than dictate terms to the market.

]]> By: Evan http://www.doughroller.net/mortgages/new-good-faith-estimate-hud1-forms/comment-page-1/#comment-16635 Evan Sun, 03 Jan 2010 17:53:06 +0000 http://www.doughroller.net/?p=10584#comment-16635 DR, Do you really think this will matter? I may sound cynical, but those that didn't understand the old HUD form (only bought one home) they are likely not to understand (or bother to read) the new one. Thoughts? DR,

Do you really think this will matter? I may sound cynical, but those that didn’t understand the old HUD form (only bought one home) they are likely not to understand (or bother to read) the new one.

Thoughts?

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