New Good Faith Estimate Requirements

Posted on October 27, 2009. Filed under: Guidelines, Industry News | Tags: , |

Soon GFE’s (Good Faith Estimates), used to detail mortgage loan cost and payment information, will be standardized across the industry.  These currently vary widely making it hard for consumers to accurately compare one to another.  At the end of this year new RESPA (Real Estate Settlement Procedures Act) guidlelines will become standard and all GFE’s will look the same.

The new three-page GFE consists of the following to help borrowers better understand their loan terms and settlement charges:

  • Page one – summary of key loan terms, escrow information and total estimated settlement charges.
  • Page two – estimate of settlement charges by category. 
  • Page three – instructions for the Borrower.

Settlement charges on the GFE must be accurate when compared to the HUD1 and will be binding (big change from before).  Consistent with most recent industry changes, these are created to protect consumers and simplify their experience obtaining a mortgage.


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