Franklin Financial Group Blog

As of January 1, 2010 the new Good Faith Estimate (GFE) required by RESPA is now in effect. As a consumer you will now receive the new 3-page GFE as opposed to the previous 1-page form. Additionally, due to the requirements of what is required on the new GFE and how that information is disclosed to consumers, the form will probably be issues at least twice during every loan process. Additionally, there will probably be two additional forms sent to borrowers reflecting Shoppable Service Providers and an Acknowledgment of the final 3-page GFE.

What this means is more information being provided to consumers which can become confusing. If you are a consumer applying for a mortgage after January 1, 2010, make sure you consult with your mortgage professional regarding the new form and how to best understand it. The revised GFE was designed with the intent to provide more accurate closing cost charges for mortgages to borrowers. While the intent is sound, it is my experience that when you triple the amount of pages for one disclosure, often the result is "overload" to someone who does not review these disclosures on a daily basis. Since the form was revised with the consumers' best interests in mind, it is you as the consumer who needs to provide feedback of your personal experience with the new form, and any others you will receive, when obtaining a mortgage loan. Feedback should be sent to your local elected official. If you would like to find your local elected officials, please visit the following site, which will point you in the right direction: http://capwiz.com/namb/dbq/officials/

Wishing everyone a prosperous 2010!