Consumers should know that HUD is trying to set up a procedure that safeguards consumers in the mortgage shopping experience and also at the closing table.
I support what HUD is attempting to do because an empowered consumer is a safe consumer.
You should know that trade groups are waging a war against HUD and this reform. If you have been burned in a real estate transaction or are simply a concerned consumer, please write to your congressman or senator and ask them to support HUD in the new RESPA reform.
What will RESPA reform do for you?
It will create a uniform Good Faith Estimate which clearly discloses terms and also creates burdens on the loan originator for correct quotes.
At closing HUD wants the closer to read from a prepared script which compares the Good Faith Estimate to the final HUD-1 in a way that is easy to understand and that would point out errors or misquotes. The great thing about this script is that the language is mandatory which means that someone can't change it to imply that the terms are anything but what they are. In other words, the closer cannot misinform you about the documents you are signing.
HUD will not tolerate misquotes on loan fees unless there are unforeseen circumstances so in this way YOU would be protected because the entire lending process will focus on getting things right before you go to the closing table.
Please help us help you. Speak up now and help HUD create a marketplace that serves the consumer. Pass the word.
You will find more information on these proposals on the HUD web-site which is linked on the right side of this blog.