GFE: New paperwork meant to protect buyers creates new headaches

Lets not act surprised. New headache to some that have to actually work and explain the package in detail. Ah those days of zooooming by… sign here, initial here are long gone.

That YSP is just a fee we can add to your mortgage…”We can roll it into the mortgage so you don’t need to bring any $$ to the table”. 

WASHINGTON – April 26, 2010 – As the real estate industry makes the transition to a revised Good Faith Estimate (GFE) launched by the Department of Housing and Urban Development (HUD) earlier this year, feedback from lenders and consumers suggests that the new process may be confusing and impractical.

Closings have been dragged out as brokers and title insurers strive to understand the longer, more detailed document and explain it to home buyers; and some lenders have been forced to create their own forms in an effort to explain what is reflected in the GFE.

The GFE changes are well-intentioned, aiming to provide new transparency on costs to buyers, who have long complained of hidden fees; better allow comparison shopping between lenders; prevent kickbacks and referral fees; and make lenders more accountable for mistakes or misrepresentations.

But, says Pava Leyrer of Heritage National Mortgage in Grandville, Mich., “borrowers are looking at this form and saying, ‘This doesn’t make any sense for us, why can’t we have something that’s more simple?'”

Among the areas causing confusion are previously itemized costs that are now are lumped together; the inclusion of some seller-paid costs, like title insurance fees, that inflate the estimate by thousands over what the borrower would actually pay at settlement; and the absence of a total monthly payment estimate on the GFE, which borrowers must now calculate on their own by referring to other documents.

Source: Boston Globe (04/23/10) Sainz, Adrian

© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688

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To ROB a COUNTRY, OWN a BANK: William Black

William Black, author of “Best way to rob a bank is to own one” talks about deliberate fraud on Wall St. courtesy of TheRealNews

Stop trying to get through the front door…use the back door…Get a Forensic Audit!

Not all Forensic Auditors are alike! FMI may locate exactly where the loan sits today.

 

This will make your lender WANT to communicate with you. Discover what they don’t want you to know. Go back in time and start from the minute you might have seen advertisements that got you hooked ” No Money Down” “100% Financing” “1% interest” “No income, No assetts” NO PROBLEM! Were you given proper disclosures on time, proper documents, was your loan broker providing you fiduciary guidance or did they hide undisclosed fees from you? Did they conceal illegal kickbacks? Did your broker tell you “Don’t worry before your new terms come due we will refinance you”? Did they inflate your appraisal? Did the developer coerce you to *USE* a certain “lender” and *USE* a certain title company?

If so you need a forensic audit. But keep in mind FMI:

DO NOT STOP FORECLOSURE

DO NOT NEGOTIATE ON YOUR BEHALF WITH YOUR BANK OR LENDER

DO NOT MODIFY YOUR LOAN

DO NOT TAKE CASES that is upto your attorney!

FMI does however, provide your Attorney with AMMO to bring your Lender into the negotiation table.

Expert Forensic Loan Audit’s for Attorney’s & Borrowers: FORENSIC MORTGAGE INVESTIGATION CORP.

Forensic Mortgage Investigation Corp, (FMI) located in South Florida, is a leading provider of automated and manual loan regulatory compliance audits to Law offices, mortgage industry’s largest originators and investors, as well as medium and small size companies. Using the latest technological audit software, along with easy to understand language, we address all applicable regulatory compliance requirements as well as any Federal and State violations.

Contact: FMI vc@fmi-audit.com (English-Spanish-Portugese) FMI Corp. are not attorney’s.

An extremely valuable tool for attorney’s and individuals who are overwhelmed and do not know where to begin. This Forensic Mortgage Loan Audit exposes red flags and concealed federal & state violations beginning with the initial borrowers loan application (form 1003). Owner has over 20+ years in the banking industry, understands the lending process, branch manager of a key sub-prime lender and was a former member of the board of directors at the International Bank in Washington D.C.