good faith

Some Lenders Skirt GFE Requirements

Some lenders are avoiding the requirement that they lock in the good faith estimate by providing something loan officers are calling “worksheets” or “loan scenario forms” that don’t have to meet a government accuracy standard.

The worksheets contain some of the information provided by a good faith estimate. They are typically provided to shoppers who don’t provide – and often aren’t asked to provide – key information, such as the address of the property to be financed.

Loan officers defend the worksheets, saying that it is impossible to provide completely accurate estimates. But Vicki Bott, a deputy assistant secretary for the Department of Housing and Urban Development, says if these worksheets turn out to be a way for lenders to avoid meeting their obligations, the department will respond by tightening the guidelines.

Meanwhile, buyers should ask for the good-faith estimate by name, so they get an accurate estimate of costs.

Source: Washington Post Writers Group, Kenneth Harney (01/15/2010)

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Elliott Robinson, JD – Associate Broker

Keller Williams Realty Metro Atlanta

315 West Ponce de Leon Ave., Ste. 100

Decatur, GA 30030

(404) 431-2117

Web: www.elliottyouragent.com

Blog – www.elliottonrealestate.com

Twitter – http://twitter.com/elliottrob

good faith

Tips for Negotiating a Mortgage Deal

Getting a mortgage loan these days can be a slow and frustrating experience.

Here are some things that buyers should know as they go through the application process:

* Ask for the “Good Faith Estimate” early. It won’t be released until it is officially “complete” and all the questions are answered. Push applicants to find answers right away to all the lender’s questions.

* Suggest they read and ask questions about the fine print. Identifying and negotiating all the fees and charges can cut an applicant’s costs.

* Shop title insurance. Point buyers toward Web sites like Closing.com, where they can comparison shop.

* Get a commitment. Insist that the lender or loan broker agree that there won’t be any other charges on the HUD-1, which most borrowers don’t see until they are at the settlement table. “If [the lender] won’t agree to that, you have to be a little suspicious,” says Claire Fennessey, senior vice president of Entitle Direct.

* Question flood insurance. If a property requires flood insurance, point buyers (and sellers) toward a civil engineering firm with experience with the Federal Emergency Management Agency’s resources to ensure that they aren’t paying too much. Eligibility for a preferred risk policy can cut costs substantially.

Source: Chicago Tribune, Mary Ellen Podmolik (07/05/2009)

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Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222