Arizona Republic (06/13/08) ; Zibel, Alan
Thursday, June 12, marked the close of comments on HUD's proposed revamp of the way that consumers apply for a mortgage. Members of the real estate industry inundated the agency with warnings that the revisions--changes to the good faith estimate, in particular--would be complicated and expensive to implement, while not necessarily shedding light on the process for consumers. "The whole idea is to simplify and save money," notes Mortgage Bankers Association CEO Jonathan Kempner, "and it seems to be going in the opposite direction." Under HUD's plan, the re-worked good faith estimate would present a summary of loan terms, interest rate and monthly payment, as well as spell out how much an interest rate and principal balance may increase and whether a prepayment penalty applies for early loan payoffs.
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