Written By: Karen Deis, www.MortgageCurrentcy.com (7-Day Trial Subscription here)
The year was 1974 - the first time that HUD required a uniform, standard closing statement (HUD1) and a Good Faith Estimate. Not much has changed since then—but expect 2010 to be the year the mortgage industry, as we know it, changes forever.
After waiting almost 6 months for the new HUD Settlement Cost Booklet, it was finally released on Dec 16, 2009 (HUD’s website) and incorporates the new GFE, HUD 1 and MDIA disclosure dates.
The entire mortgage application, closing and servicing (the loan) process is all explained in a 49-page booklet and I venture to say—it’s really GOOD!
This booklet protects you, the loan originator and mortgage company manager! Pretty much everything clients need to know is covered—so clients can’t come back to you and say—“you’ve never explained that to me”.
Some “experts” say that the booklet is required to be given ONLY to someone who is purchasing a home. We disagree. In the Mortgage Disclosure Improvement Act, it specifically lists the transactions that require disclosures and we believe that they renamed the booklet “Shopping for Your Home Loan…” for a reason!
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