New Good Faith Estimate will hold Lender’s feet to the fire

Starting January 1, 2010 all lenders will be required under the Department of Housing and Urban Development (HUD) to use a uniform Good Faith Estimate of closing costs. Under this new rule, lenders will no longer be able to charge a laundry list of lender fees such as processing, underwriting, closing, post-closing etc… which in the past was a tactic to squeeze more money from unsuspecting borrowers at the last minute. With this new form borrowers will have a simple way to see exactly what lenders are making. The money a mortgage company makes for all their work will be shown as the Origination Fee and/or the Yield Spread Premium which will also be disclosed. In addition, if the lender’s fees at the closing table end up being higher than what was quoted on the Good Faith Estimate, the lender may be obligated to refund the difference to the borrower. In fact, for the first time in 30 years the Uniform Residential Settlement Statement or HUD-1 has also been changed. Now, buyers/borrowers will have both the figures that were quoted to them in the Good Faith Estimate and the final figures that are charged at closing all on one document. This is great news for buyers/borrowers. Thanks to these regulations we should see more transparency and accountability by the lending industry. The only thing is what about the secondary market? Why do we not see regulatory agencies coming down on the investment banks that fueled the fire by demanding hundreds of Billions of Dollars of mortgages in order to spin off high risk mortgage paper through credit default swaps and other complicated slight of hand tactics to lure investors looking for high yield returns. Have we really learned anything from the “junk bond” days?

Agency Mortgage Bonds Claw Back

By PRABHA NATARAJAN NEW YORK — Mortgage bonds guaranteed by Fannie Mae and Freddie Mac were on a rebound Friday morning as the intense selling over the …

See all stories on this topic
http://bit.ly/5Azsr

The American Spectator : Ten Thoughts on the Causes of the Bubble …

Fannie Mae and Freddie Mac, a government-sponsored duopoly, were made into huge points of concentrated vulnerability to failure, which then indeed failed. They significantly inflated the housing bubble though their huge entry into high …


The American Spectator – http://spectator.org/
http://bit.ly/vCPUl

IBDeditorials.com: Editorials, Political Cartoons, and Polls from …

But the federal government forced banks to lower their lending standards to boost homeownership, while also encouraging Fannie Mae and Freddie Mac to finance the whole mess by buying up the bad loans. As Thomas Sowell, perhaps America’s …


IBDeditorials.com Commentary… – http://ping.fm/zUFCr
http://bit.ly/N8uVG

Nearly Twelve Percent Behind on Their Mortgage: Report

The rate of foreclosure starts remained essentially flat for the last three quarters of 2008 and we suspected that the numbers were artificially low due to various state and local moratoria, the Fannie Mae and Freddie Mac halt on …


HULIQ – Citizen News Review – http://www.huliq.com/
http://bit.ly/2IAP

A Teachers View

Executives at Fannie Mae and Freddie Mac will be receiving $210 million in bonuses over an eighteen-month period, that’s $45 million more than the AIG …

See all stories on this topic
http://bit.ly/15xB7h

Mortgage-Bond Yields Jump, Jeopardizing Fed's Housing Effort

By Jody Shenn May 27 (Bloomberg) — Yields on Fannie Mae and Freddie Mac mortgage bonds rose for a fourth day, after yesterday for the first time exceeding …

See all stories on this topic
http://bit.ly/2D71yL

What the Heck is a Jumbo Loan? | Mortgage Refinance

A jumbo loan is a non-conforming loan in the sense that it does not conform to the usual standards of underwriting for Fannie Mae and Freddie Mac, the two pseudo-government loan agencies responsible for buying and reselling good-credit, …


Mortgage Refinance – http://ping.fm/KAJCO
http://bit.ly/tvwmh

Lagniappe's Lair: Congress poised to hand more tax money to group …

The guy who made the abuse at Fannie Mae possible is once again abusing the power of his office, this time for the benefit of ACORN–a systemically-corrupt socialist organization that Barack Obama was once employed by back in his …


Lagniappe’s Lair – http://ping.fm/rWHiM
http://bit.ly/93sBY