Even though November saw a dip in sales contracts, January’s activity is good - buyers are out and closings are happening regularly.   Mortgage payments are being lowered through refinances. Businesses are using the new year as a fresh start - gearing up for a successful year chock full of ambitious goals and positioning themselves for growth.  How are you starting the year off right?  I’d love to hear.

In mortgage news, the new GFE and HUD disclosures are in full effect.   The industry and borrowers are becoming familiar with the changes and seeking understanding of the GFE.  The new GFE has its good points and bad points.

The good news: gone are the days of home buyers getting to the closing table only to discover hundreds if not thousands more in closing costs. The new GFE now holds individual loan officers financially responsible for changes in costs.

The drawback of the new GFE is it doesn’t tell home buyers how much the home will cost every month and their total due at closing. Unbelievable but true. To make up for this obvious blunder, we’ve developed a simple mortgage worksheet. It’s much easier to understand than the new GFE and clearly spells out closing costs, escrows and even shows the monthly payment. Now that’s what I call serving the client in ‘good faith.’

Happy 2010! Well, another year is among us as well as a fresh start for resolutions. For many, buying a new home or refinancing is among them. The Department of Housing and Urban Development is hoping to help customers have an easier experience by enforcing a new set of rules. Included in the new rules is a standardized Good Faith Estimate with the goal of allowing homeowners clearer comparisons of their options among mortgage lenders. In addition, settlement statements will mirror the GFEs to facilitate comparison of the original estimate to final cost.   In November, HUD declared that there would be a four month “grace period” allowing lenders to ease into the new guidelines and make certain everyone is catching on and following the rules appropriately.  

I’m not saying the transition will be a walk in the park, but Cunningham & Company is dedicated to staying compliant and efficient. We have the customer’s best interest in mind and will do what it takes to stay ahead of the game.