The new GFEs are so confusing you need to be a physicist to understand it and if you have purchased a new home recently you have seen a new HUD-1. Under the revised Reg X lenders are required to provide a full comparison from the good faith estimate (GFE), when you applied for your loan, to the HUD-1 or settlement statement when you close on your loan. The new format went into action on January 1, 2010.
From what I am hearing everyone from veteran lenders to experienced escrow officer don't understand the new format. So if these folks who issue the GFE and the HUD-1 don't get it, how is the consumer supposed too?
I have seen the new format myself and it is worthless. It does disclose what fees cannot change, fees that can change up to 10%, and fees that can change. But who decides what fees can and cannot change?
To me it is just a big smoke screen by the Fed to make it look like there is actual mortgage reform. I think it's just a load of crap to psychologically give the consumer the feeling something is being done. Anyone remember the terror alerts before we bombed Iraq? This is the same kind of scare tactics used then.
The new revision to Reg X is not the answer. Only through education and people living their wage will we prevent this from happening again.
Have you bought a new home this year? Did you understand the new HUD-1? Let us hear from you.
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
No comments:
Post a Comment