The body of federal law that governs most aspects of residential closings that involve a new mortgage loan is known as the Real Estate Settlement Practices Act (RESPA). Our US Department of Housing and Urban Development, among other things, issues and enforces the regulations that flesh out andimplement the law.
HUD announced today that it amending its regulations to require mortgage loan brokers to actually give prospective buyers a standardized Good Faith Estimate of their closing cost. OK, the truth is that they already require GFEs, they are changing the format. What was once a fairly incomprehensible one page form is now a three page colorized incomprehensible form, that will come with a fourth page of "explanations"
HUD estimates that the new regulation will save the average consumer $700 at the closing table. Cool right?
Here's the catch:
The reegulation does not go into effect until Janury 1,