The US Dept. of Housing and Urban development (HUD) has released proposed new rules in an attempt to lower costs to consumers when buying a home. RESPA was orinally created to protect consumers but creating a standard way to disclose the true cost of a loan, and allow consumers to easier compare multiple loans. The statute was successful, but there’s always room for improvement. The highlight of the proposed changes will save consumers an average of $700 in fees. The format for Good Faith Estimates and HUD-1 will also be modified, in an effort to create a uniform standard. The greatest benefit in my opinion is the section addressing where and how loan origination fees are disclosed. Under the new rule, any and all fees paid to the originator (think mortgage broker) must be disclosed in the same section on the new forms. This should help consumers in comparing loan packages, and take the mystery out of some fees.
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
-
No Comments Yet