The New GFE
Posted on | December 28, 2009 | No Comments
As of January 1, 2010 all mortgage lenders will be required to use the new Good Faith Estimate (GFE) and abide by the new disclosure regulations that accompany the new GFE. While this is different from GFE’s of the past, it is not designed as a user friendly form for the lender but a form that is friendly to the mortgage customer. Because everyone will have to use the same form, it should be easier for the consumer to understand. I certainly hope this eliminates any comparison questions as all fees, though lumped together, are required to be disclosed for the consumer to see.
Once this form has had the chance to be used for a while, I believe it will be a plus for the industry as a whole. And while it odes some really good things it also makes it virtually impossible to close a loan quickly. Appraisals cannot be done quickly and you have to wait at least 3 days and sometimes up to 7 days after the GFE have been released in order to close the loan. This simply means that loan officers, processors, closers and title companies will have to be on top of their game at all times because the process will no longer allow much leeway. It will be more and more important to get it right and get it right the first time. So whether you are a consumer or Realtor, working with an experienced loan officer will be very important from this point forward.
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