They all stink.
Why is it that our government did not actually speak to mortgage professionals, title professionals and people in the real estate industry so we could give our opinions on what would work and what would not.
Was it because the government thinks mortgage professionals are the problem?
Was it because the government believes realtors are the problem?
Was it because the government believes title agents are the problem?
I am thinking it is the government that is the problem. Just like the HVCC and the new appraisal rules the government fails to receive input fromn the people who work in the industry.
The governement has said that the reason for coming out with these new rules is to simplify things for the borrower. They want to make sure that the borrower is not at the closing table expecting one figure and having to come up with a lot more then what was originally disclosed. I totally commend them for that. However, the execution is horrible.
Want to hear something funny? The government says that they reduced the Good Faith Estimate (GFE) to 3 pages. Huh. I am not sure about you, but I have never seen a GFE more then 1 page.
Why is it neccessary to put the title insurance premium on the GFE if the seller is paying for it? How is that simplifying things?
Why is it neccessary to lump all title charges into one large settlement fee?
Why is it that many of the fees are not itemized?
Now that you changed the process and form then shouldn't you have to have the borrower sign it to acknowledge that these fees were disclosed to them?
How many GFE's do you think a borrower will have before the final one is delivered? A borrower takes the original one which has fees a lot less and brings it to closing then what?
This is just like our government to not think before we act. I believe I was taught by mom to think before I act and if I have nothing to say nice then don't say anything at all. We as a society and government need to look at the consequences of our actions. It seems to me when we do not ask the people who are in the industry how these changes will effect things then we are doing an injustice to the industry. The government wants to protect the borrower, and I do as well, but this is not how. Make changes, but make beneficial changes.
Do not say you want to simplify things for the borrower and make the forms more complicated. It has an adverse effect on our industry, and I am very dissappointed with our government. I see changes in the near future. We will have a new HUD within 3 months I am sure of that.
David Serle
Vice President/Managing Broker
RE/MAX Services
561-912-3500 Office
561-912-3502 Direct
561-756-3104 Mobile
