Still not understanding the new RESPA Rules or why you can not get a good faith estimate (GFE)? You are not alone!!
HUD issued a 57 pages of !!
A GFE shouldn’t be issued until the loan originator has a . Once the originator has a complete application, they have 3 days to issue a GFE or deny the loan. In issuing a GFE, the originator creates liabilities for the lender that cannot be modified without a change in circumstances.
of change of circumstances:
(1)(i) Acts of God, war, disaster, or other emergency;
(ii) Information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided. This may include information about the credit quality of the borrower, the amount of the loan, the estimated value of the property, or any other information that was used in providing the GFE;
(iii) New information particular to the borrower or transaction that was not relied on in providing the GFE; or
(iv) Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.
(2) Changed circumstances do not include:
(i) The borrower’s name, the borrower’s monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information changes or is found to be inaccurate after the GFE has been provided; or
(ii) Market price fluctuations by themselves.
I believe the intent of the new 2010 GFE was to universalize a form that would enable a consumer to compare lenders/brokers fee’s . Unfortunately the 2010 GFE is a cumbersome disclosure that has made it difficult for a lender to offer clients a useful to tool.
Pros:
1) Established what constitutes a complete application
2) Consistent look of GFE for all loan originators
3) Protecting consumer from inaccurate rate/fee quotes (they must comply with)
Cons:
1) Includes costs the buyer may not have to pay(depends on State/County home is in)
2) Does not include PITI (principal, interest, taxes and insurance) of home
3) Does not illustrate true cost to buyer.
4) Took 1 page form and made it into 3 pages.
If you want a good faith estimate, then be ready to provide a complete application. Some loan originators will offer you a cost worksheet prior to a complete application. If the cost work sheet is from a reputable source, then it could be a useful resource. It should include an estimate on the borrowers out-of-pocket expenses, as well estimate on principal/interested (based on loan amount/interest rate), taxes and insurance (estimate based on price/area of home).
If you are buying or refinancing on the West Coast (Washington, California and Oregon), please give me a call to discuss your options. I can be reached at 971-226-8403.
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pWhen something is on a doorstep--any doorstep--there are only two places it can be going: either back inside the metaphorical house, or back to the world outside. Bonds, as represented not by our namesake MBS, but by the 10yr Treasury note, find themselves in just such a dualistic state this evening. They too, are on a doorstep, their location being most perfectly defined neither by the quot;outsidequot; or the quot;inside.quot; when we are talking about outside versus inside, it#39;s in reference to the range in which the 10 year treasury was trading between August 21 and December 14, 2009, quot;the brave old world.quot; These four months represent a unique time in the economic history surrounding the financial crisis. it was a unique time in and of itself in that we were neither rising...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/133692.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133692/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133692" width="1" height="1"
pPosted To: a href="/news/"MND NewsWire/a/pA consumer survey conducted by Thomas Reuters and the University of Michigan indicates that it is sellers who are holding the housing market at low levels. In survey results released today, approximately 75 percent of homeowners who participated in the survey viewed current home buying conditions as favorable because of attractive home prices and low interest rates. However, nine out of ten of those home owners viewed the conditions for the sale of their own home as unfavorable, not because of lack of buyers, but because of price declines . The survey authors viewed these responses as predicting a long-term drag on the housing market for both economic and psychological reasons. There is, the report said, a significant barrier to purchasing a new home if the potential buyer#39;s current home...(a href="http://www.mortgagenewsdaily.com/02052010_home_sellers_still_see_conditions_as_unfavorable_perspective_on_shadow_inventory.asp"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133636/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133636" width="1" height="1"
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pAfter reaching as high as 101-20, MBS 4.5#39;s are back down to 101-14. Its seems that layers of support are building at levels that would leave 4.5#39;s at PAR after settlement next week. Far be it from me to suggest there#39;s some sort of external force that continues to push 4.5#39;s toward that 101-00 level, but it LOOKS that way on the chart at least. Meanwhile, stocks had recovered 100% of today#39;s losses, though with the close still 20 minutes away, difficult to say where things will end. As for treasuries, the yield curve is reasonably unchanged on the day save for a little bulge in the belly (5#39;s and 7#39;s leading the pack by 2bps). All told, the stock lever did what we wanted it to do in the case of a stock sell-off today, and as stocks have rallied, little of what we...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/133657.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133657/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133657" width="1" height="1"
pPosted To: a href="/channels/voiceofhousing/default.aspx"Voice of Housing/a/pThe nationrsquo;s capital is quickly shutting down, now that forecasters are calling for one to two feet of snow overnight. Local authorities warn residents to prepare to ldquo;shelter in placerdquo; for three days. Expect housing-minded Washingtonians to be hunkered down in their homes this weekend huddled around the fire reading the Obama Administrationrsquo;s proposal for the future of Fannie Mae and Freddie Mac. Oh wait, that long-awaited plan didnrsquo;t materialize this week. ( READ MORE ) Already some folks are taking shots at the Administration for not coming through with new ideas as promised for how to deal with the two housing GSEs. But is that fair? Frankly, a reengineering of the secondary market is going to take some serious time . And brains. Itrsquo;ll require some of...(a href="http://www.mortgagenewsdaily.com/channels/voiceofhousing/133642.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133642/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133642" width="1" height="1"
pPosted To: a href="/consumer_rates/"Mortgage Rate Watch/a/pMortgage rates improved a few basis points yesterday as panic set in on Wall Street. Headline news called attention to a developing crisis of confidence in the European Union where Greece, Spain, and Portugal all face ballooning budget deficits and rising government borrowing costs. Fear caused a global stock market sell off which led nervous investors to reallocate funds into what is considered to be the safest investment in the word, US Treasuries. This quot;flight to safetyquot; into the bond market helped mortgage-backed securities prices move higher which allowed lenders to pass along slightly lower mortgage rates. While improvements were noted,many originators were expecting more aggressive loan pricing from lenders, but as has been the case over the past few weeks, 4.75% continues...(a href="http://www.mortgagenewsdaily.com/consumer_rates/133561.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133561/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133561" width="1" height="1"
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pEven by the time of our last commentary, it was no mystery that we got our bond-friendly eventuality today after the jobs report. That#39;s nice, of course, but somewhere between 3.55 and 3.57, chart watchers will notice that yields held under these levels for the majority of the 2nd half of 2009. It#39;s probable that the short term chart below is picking some of that up in where it decided to offer resistance today. The question is: will Monday confirm this test? And of course we wouldn#39;t talk about such important long term levels without refreshing our collective memory on their validity: In deciding how likely any sort of continuation of this bond rally might be, the stock market continues to suggest itself as a good indicator of bond movements. Sure, this can change from day to day...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/133629.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133629/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133629" width="1" height="1"
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pThe dust is starting to settle after the initial knee jerk reaction to the Employment Situation Report. Stocks are still dealing with yesterday#39;s sovereign debt/jobs data/panic induced weakness. The Samp;P is currently -0.14% at 1060. The dollar is holding onto yesterday#39;s FLIGHT TO QUALITY rally, currently +0.46% at 80.283. (Global debt fears sent funds into the safest currency yesterday...yeh THATS RIGHT..KING DOLLAR!!! Last time I quote Larry Kudlow, I promise) The 10 year Treasury note is trading above yesterday#39;s levels. The 10yr futures contract has seen HUUUUUUUGE trading volume this morning. A nice level of support has been built in at 118-12. 118-12 is right about 3.60% in the cash market for 10 year Treasury notes. The 3.375% coupon bearing 10 year note is currently ...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/133582.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133582/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133582" width="1" height="1"
pPosted To: a href="/garrett_watts/"The Garrett Watts Report/a/pWe mentioned recently that Google was sitting on $24.5 billion in cash. Apple has $40 billion in cash, and even after paying out huge dividends, Microsoft still has $37 billion in the green stuff. From a friend at the FDIC: ldquo;We are doing a LOT of hiring right now, in case you want to make your readers aware. These are temporary jobs (2+ years) mainly located in So. California, No. Florida, Chicago, Dallas and some other spots here and there. These are bank resolutions jobs - closing banks and liquidating them. HERE IS THE JOBS LINK . Okay, you guys. This may be a great way to get back on the merry-go-round! Unless you think California will default on its bonds, you can buy California Lease Revenue Bonds maturing in 19 years and yielding 5.82%. Since theyrsquo;re tax exempt, this is the...(a href="http://www.mortgagenewsdaily.com/garrett_watts/133546.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133546/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133546" width="1" height="1"
pPosted To: a href="/channels/pipelinepress/default.aspx"Pipeline Press/a/pA hole has been found in a nudist camp wall - the police are looking into it. There is also a hole in Harrisburg, Pennsylvania#39;s budget, and the city is considering filing Chapter 9 bankruptcy . (The capital of PA, with a population of 47,000, has $68 million in debt service payments this year due to the construction of a waste incinerator, which is four times more than what the city expects to raise through property taxes and $4 million more than the city#39;s entire proposed operating budget!) Yesterday#39;s stock market drop dominated the financial news . And a slowing economy helps rates and mortgage loan agents, right? (It#39;s a two-edged sword.) So the markets did not pay much attention to Non-Farm Productivity increasing over 6% during the fourth quarter of 2009. Efficiency in...(a href="http://www.mortgagenewsdaily.com/channels/pipelinepress/02052010-gmac-super-bowl-buybacks.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133517/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133517" width="1" height="1"
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