Sunday, December 27, 2009

New Good Faith Estimate: "The Shopping Cart"

(This is Day 8 of 12 in a series called "The 12 Days of RESPA Reform" which will run until December 31st. For a full list of RESPA topics, check here.)

At the heart of the new GFE and HUD-1 scheme is encouragement of borrowers to shop for loans and the services therein. To this end, HUD actually added a feature to the GFE to prompt borrowers to compare loans from various lenders.

Whether and to what extent borrowers utilize this feature is anyone's guess, but the Shopping Cart does remind borrowers that there are many aspects of a loan which can affect them financially, and that they do have the ability to shop and compare.

Tomorrow's post will be a list of links we've found to be helpful as we research this new change.