New Standardized Form May Save You $700

The federal government is changing the way lenders will work with anyone shopping for a mortgage loan in the future. Loan originators will be required to provide borrowers with a Good Faith Estimate (GFE) three days after the loan originator receives the borrower's necessary information.

Borrowers will easily be able to compare their final closing costs and loan terms on new HUD-1 Settlement Statement with those listed on the lender's original GFE estimate. HUD estimated that the consumer will save as much as $700 when originating a new loan since the lenders will be limited in the amount their estimated changes can change. The effective date for the new standardized GFE and revised HUD-1, the required implementation date is January 1, 2010.

Here is the entire new story if you would like to learn more about the changes.