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Last Month for the Good Faith Estimate

September 2015 is the last month for the Good Faith Estimate.

Beginning October 3, 2015, the Loan Estimate (LE) replaces the GFE, per federal law.

There will be no more HUD-1 Settlement Statement. That is being replaced by the Closing Disclosure (CD).

Why? The Consumer Finance Protection Bureau has determined that the GFE they designed in 2010 is confusing borrowers. It has taken the committee more than four years to come up with a new form — but finally it is ready to roll out. The LE and CD will be mandatory for all mortgage lenders, including banks, brokers, direct lenders, and credit unions.

Along with the improved LE and CD, come new regulations (commonly called TRID).

Important rules to be aware of are the following:

If you’d like to read the condensed “Reader’s Digest” version of the new law, the CFPB has released 91 pages here.

Stay tuned for more information about the ever-changing world of getting a mortgage. I will post updated information as we get closer to October 3rd.

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