One of the more exciting pieces of mortgage news to come about lately is the new Good Faith Estimate form from HUD. The Inman News blog points out that there are a lot of good features in the new form from HUD. Some of them include:
- Limits on some cost increases at closing.
- Disclosure of loan terms in plain English.
- Easy to read format.
- Ability to easily compare loan terms between mortgage lenders.
Of course, the new Good Faith Estimate form isn't perfect. At Lenderama, the complaint is that it still lacks clarity in terms of kickbacks for mortgage lenders. But the new form is a step forward in consumer protection. It doesn't protect from incompetence in mortgage borrowers or lenders (or noncompliance from unscrupulous mortgage lenders), but it does make it easier for you to be a smarter consumer when buying a home.
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