Consumer Financial Protection Bureau changes
It’s Friday May 20, 2011- 1 day before the earth is blown up. Did you pay your Comcast bill? The Consumer Financial Protection Bureau (CFPB) is trying with an open mind and good intentions to change the GFE and the TILA. If you have not seen the example, go to https://www.consumerfinance.gov/knowbeforeyouowe/#x31
What they have done is an excellent first step in making the consumer understand what they are paying in order to facilitate a real estate/mortgage transaction.
The items are clearer, the goofy origination fee minus the ysp/srp credit is eliminated and the form shows you what you are actually paying.
What it does not do is absolutely, positively outline each and every cost. The pre-2010 GFE did exactly that. Also, the HUD -1 settlement sheet that people have seen at closing for 30 years does that.
My idea
My idea is to make the GFE the HUD-1. Also, have not only mortgage people use it, but have real estate agents that are required by their state to give an estimate use it. That brings me to another point: states that do not require an agent to give their buyers an estimate of all the costs should think about changing that!
Now, implementation: There is no reason not to have a national, web based data portal that could tell the exact costs of the required items such as transfer taxes, recording fees, taxes with their due dates, etc so that the GFE that is give is an accurate one. This way, the agents, both mortgage and real estate, can give people more precise costs so people know what they are getting into!
Additionally, there would be no surprises at closing. This is exactly what CFPB wants. And all the jokers that survived on BSing people, well, there are plenty of burgers at In and Out that need flipping. Of wait, you probably won’t pass their background check. Oh well.
So, let’s all get involved in the discussion, let’s get an easier way to disclose and become a highly regarded profession instead of being labeled Used Car Sales people. It’s not hard and it’s actually smart.
This has been Fred Glick. Have a nice death tomorrow but pay your Comcast bill first.
Realty Reality! That describes Fred, a sharp witted and outspoken realist for the mortgage and real estate world who has appeared on CNBC and NPR's Marketplace along with being quoted in the New York Times, The Wall Street Journal and other media outlets. Fred is the CEO of U S Spaces, Inc/Arrivva (a real estate brokerage firm in PA, NJ, DE and CA) and U S Loans Mortgage Inc (mortgage brokerage in PA, CA, FL and VA), and serves on the Board of Directors and is the Federal Legislative Director for the UpFront Mortgage Brokers. Fred is also the co-creator of real estate startup Rentscoper.com, a mathematically driven rental search engine. See everything Fred at fredglick.com.
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