Mortgage Loans, Good Faith, and Bob Dylan

In the world of mortgage loans, the times they are a-changing. On top of all the other “adjustments” that affected buying real estate in Tampa Bay this year, we’ve got new HUD guidelines to contend with as well.

Part of the impact here is that the official Good Faith Estimate won’t be issued until the home buyer actually has identified a specific property for which they are requesting a loan. Once the mortgage broker is able to provide the GFE associated with that mortgage, he or she MUST provide a list of the providers who gave those costs. If the borrower decides to use anyone from the mortgage broker’s list of providers and the aggregate of the loan costs winds up to be more than 10%, then the lender is on the hook to pay the difference.

This is just the tip of the iceberg and I don’t mean to be whining about how hard my job is. Most every occupation involves mandates whether they’re imposed ethically, governmentally, or legally. From my perspective, the business of doing loans should challenge the lender, and ultimately should serve in the best interests of the client. And I think that we will get there.

At the end of the day, I am just preaching patience here. And that patience needs to come from the real estate agents and the borrowers to understand that ours is an industry that is currently playing catch up to all the “new and improved” process modifications. Bob Dylan understood: “…The slow one now will later be fast, as the present now will later be past…”

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