Major changes hit lenders

To say the mortgage industry has changed is an understatement. Words of RESPA and Hud are dancing in the heads of all lenders currently. RESPA has enacted a major change in the way mortgages are applied for. Notably is the good faith estimates. The simple one page report with a summary of numbers and bottom line figures, are no longer in existence. A one page easy to understand document has turned into a 3 page survey that shows no bottom line to the consumer and is really a doctorial of things that could be shown by a numerical summation. It has caused much frustration throughout the industry. Also the process of loans has differed. A lender must now show a borrower upfront this 3 page good faith estimate and must receive a “intent to continue” before 10 days or your loan will be withdrawn. Rate locks cannot occur unless this intent to continue is issued by the borrower. Also make note for potential home purchasers is that a firm pre-approval that Realtors covet will no longer be issued, only pre-qualification notices can be issued to write contracts. This could have an effect on competitive contracts and offers. We all must adjust to new rules, but as much as lenders need to adjust, the public needs to be just as educated on the changes, which in my opinion is just not happening.