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Cordray unveils ‘Know Before You Owe’ mortgage rule

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Mortgage Professional America | 21 Nov 2013, 12:12 AM Agree 0
The head of the Consumer Financial Protection Bureau announced a new rule to simplify mortgage forms Wednesday – but some industry groups are calling it an undue burden on smaller lenders.
  • Bruce | | 21 Nov 2013, 07:53 AM Agree 0
    I must be missing something - the old GFE had the interest rate, costs (CC&PP) and the payment break down, all on one page. With a 3 page GFE the consumer understands more???
  • Griff | | 21 Nov 2013, 09:22 AM Agree 0
    No Bruce you are not missing anything.

    The one item that could have been improved upon is the difference in how a broker must show the fees and a bank must show fees. In hand with that having brokers and banks include the same fees in an APR calculation... those things would bring clarity to the shopping process.
  • christy | | 21 Nov 2013, 09:26 AM Agree 0
    EXACTLY. The old GFE had it all and within 3 days. Bring on more paperwork, bring on more rules, and bring on a more complicated process...and still a borrower that makes mortgage application 9 times out of 10 will not read the paperwork. It all comes down to one thing...trusting who you choose to work with! The people put in place to make these decisions in our industry have no clue. They should do the job before they change it!
  • Beverly, Loan Officer | | 21 Nov 2013, 09:45 AM Agree 0
    We have a 'new' GFE that does not even tell a buyer how much money they will need for closing day. It was designed by our government to help the consumer, enough said. When will you realize that people who know nothing of our industry should ask for help from our professionals in designing anything to help the consumer. Most of what you are referring to is in place and has been for a long time. Ask people who know and stop trying to make it sound like you are helping someone, when in fact, it is just self posturing for your next review or election for yourself.
  • Jane | | 21 Nov 2013, 09:46 AM Agree 0
    I agree with Christy and I think Mr Cordray should let me perform his next medical procedure because I was voted to be the nicest patient in my Dr's office. That would make about as much sense as letting someone who has never "done the job" make such decisions about the industry. Really?
  • Brian | | 21 Nov 2013, 10:07 AM Agree 0
    As a mortgage broker I love the position I am in. My note rates and closing costs are lower than bank and Mortgatge bankers. Where clients get confused is that my APR is always higher because we have to add our compenstaion to the calculation. I love when big bank employees tell the client that lender paid compensation fees are additional hidden fees that we as mortgage brokers will collect at closing because they cannot compete. In all fairness to consumers comparing a brokers GFE to a bank's GFE is the same as asking a vegetarian to compare apples to horse meat.
  • christy | | 21 Nov 2013, 11:18 AM Agree 0
    Brian i agree with you totally. AS a mortgage broker we have all the control, can control our pricing, and the banker LO's can't compete. Bank greed is controlled by bank pricing and is always higher, and offer poor customer service!
  • Neil | | 21 Nov 2013, 12:03 PM Agree 0
    I can't wait for the GFE with a stick figure cartoon booklet to make to "easy" for the borrower to understand...way to go Cordray!
  • Ben Vogler | | 21 Nov 2013, 02:51 PM Agree 0
    Cordray is so smart. What a concept..."Know Before You Owe" ... and simplifying the process. Why didn't I think of it. Cordray should be nominated for the Nobel Prize. How about going back to the old GFE with a couple of additions like Prepymt Y or N and Loan Locked Y or N. And how about Cordray consolidate the 40+ pages required now and govt agencies requiring different authorizations into a simpler process?
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