Dec 26 2009
Mortgage Good Faith Estimates enforced, finally.
Aimed at providing clearer upfront mortgage disclosure with easily comparable standardized Good Faith Estimates; the RESPA 2010 rules begin January 1st. One of the enhancements is enforcing quoted lender or bank fees, with a “no tolerance” rule. That is, once you have received your Good Faith Estimate, the mortgage lender or banks charged fees cannot be changed; period.
This is tough news for those mortgage knuckleheads who were ambiguous with changing initial quoted interest rates and/ or adding additional discount points and other miscellaneous mortgage fees at closing. You know, the ones who preyed on first time buyers who perhaps didn’t know that changing the mortgage terms at closing violated laws already written.
For career minded and experienced Mortgage Professionals, however, the new RESPA changes are welcomed. Disclosing upfront closing costs and delivering the same at closing is par for the course. It’s interesting that the entire Good Faith Estimate had to be reinvented with tolerance laws when we could have simply enforced laws already in place. Besides, these new RESPA changes are about 5 years late and most of the rogue rip-off mortgage bankers and brokers have left the industry.
2010 is destined to be a great year for those who have survived the FL mortgage market. Let’s embrace the RESPA changes which are simply trying to put first time home buyers in a better position, and saving them money, while shopping for their new mortgage.