Here is a just one example of change to come.  We are all used to getting “pre-approved” for that new home and perhaps even receiving an upfront Good Faith Estimate all while searching for that new dream home.  Starting January 1st, Good Faith Estimates cannot be provided unless you have a complete mortgage application.  A complete application is not an application unless there is a property address recognized.  So much for pre-approvals while searching for that dream home.

We will start seeing more pre-qualifications and Good Faith Estimates that are for illustration purposes only.  Without a property address home buyers get practically nothing.  Realtors and home buyers are going to have to depend on experienced FL Mortgage Professionals with specific knowledge of current FHA, VA and conventional  mortgage programs. 

Change is good; and in just a few days the mortgage arena will change and how a first time buyer shops for their new home will never be the same.  Fun times – for Mortgage Professionals who always disclose everything upfront to their home buying clients.

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.