The requirement for the new Good Faith Estimate (GFE) is challenging to both Consumers and for the Loan Officers providing this new GFE to their clients. The structure of the new GFE is a sincere regulatory attempt to provide the consumer with the cost information that they would be charged by their lender and to require lenders to stand by their consumer quote. The outcome has only partially provided the desired result with the new GFE. The form mixes some costs that are lender costs and some that are not, it also mixes some costs they may or may not actually pay. What it does not cover is the estimated full monthly payment and a comprehensive escrow estimate. This new GFE form has prompted thousands of emails and phone calls to Housing Urban Development (HUD) and a few hundred GFE sessions sponsored by Mortgage Banking Associations and Attorney firms throughout the United States. All of this effort has still not answered many questions and structural problems on this Federal form. It is further complicated by inconsistencies between the new GFE and many State Mortgage Banking regulations. With all this said what should we expect? First, that Loan Officers should take the extra time necessary to assist the consumer in understanding the new form - what it means and where it falls short. Second, Loan Officers need to work closely with all parties involved in the transaction to assist the consumer in navigating through the loan process from origination to the closing table. Third, that in time, complete and sufficient clarification will be provided for the new GFE form and it will be slightly amended in order to remove the confusion for the consumer.

Matthew Patterson
President
Superior Mortgage Corp.