BluefoxToday blog : New Good Faith Estimate (GFE) And Truth In Lending (TIL)

New Good Faith Estimate (GFE) And Truth In Lending (TIL)

After almost two years since the new Good Faith Estimate (GFE) and Truth In Lending (TIL) have gone into effect, Washington is coming to the realization that everyone in the Lending Industry came to the minute that the revised forms were unveiled.  The Lending Industry has been stating for almost two years that these forms do not do what they were meant to do.  In fact these two forms not only fall short of what they were intended to do, they may even be accomplishing the opposite.

The reasoning behind the new GFE & TIL was to bring about more transparency.  So the new GFE went from a one page document to a three page document, and the TIL from a one page document to a two page document.  The TIL may have actually moved closer to accomplishing the intent of the document, but it still fell short, but at least it was a step towards more transparency.  The GFE on the other hand was a completely different story.  Here are some of the reasons why:


  • No where on the form is the Loan Program Listed (it was on the old form)
  • The total monthly payment (principal, interest, taxes, insurance, & MI) is not disclosed.  Only the principle, interest, and if applicable, MI are disclosed.  Borrowers want to know what their total monthly payment is going to be and not just the principal, interest, and MI (the total payment was disclosed on the old form)
  • Many of the fees are not individually disclosed, but grouped into one total (they were all individually listed on the old form).  Example:
    • Lenders Fees are combined and given as one total
    • Title Insurance and Attorney Fees are combined and given as one total.
    • Escrow for Tax and Insurance are combined and given as one total.


So now Washington has finally come to the realization that if they want more disclosure and transparency, that they need to talk with, and listen to the advice of those who work with these document daily.  The new effort is to combined the GFE and TIL into one document, and to clearly state, and provide the transparency that was intend with the present documents. 

The drafting of this new document is underway, with hope to roll it out in the near future.  I for one am looking forward to seeing what it looks like, and will reserve judgment until I see it.  But if the points that I made up above are address and correct, this documents will make a marked improvement to finally start to provide the transparency that is long over do in the Lending Industry.



Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308, or visit my McCue Mortgage Homepage.



 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or

Comment balloon 108 commentsGeorge Souto • September 16 2011 08:07PM


George, if only they would do focus groups and test a new document with consumers and propfessionals before they release it. The new forms are extremely confusing and do not have some very important facts, as you stated.


Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 9 years ago

Perhaps if politicians had to apply and qualify for a loan like everyone else, instead of getting the sweet heart deals we have heard so much about, the forms would be what we in the industry know they need to be.  Just saying.  Once again some politician who has never worked in the industry they are trying to regulate makes up another form.  I truly hope they get it right this time, but I'm not holding my breath.

Posted by David A. Weaver, 24 years helping folks finance their dreams. (Peoples Bank & Trust Co.) over 9 years ago

George -- If only the government understood that quality not quantity is what counts, Increasing the page count on each of these forms doesn't make either better. Combining the two makes sense if the transparency is there.

Posted by Barbara Altieri, REALTOR-Fairfield County CT Homes/Condos For Sale (Kinard Realty Group Fairfield and New Haven County CT Real Estate) over 9 years ago

George ~  This is good news for consumers... I don't know why they don't ask the folks in the field and even consumers.. what works.  I am keeping my fingers crossed.  The current forms are not doing what they were intended to do..

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 9 years ago

George - I was one of those that thought (and still think) the new GFE is a joke.  I would love to see it put to death.  Personally, I thought the old one was just fine and still use it now as an itemized fees worksheet.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) over 9 years ago


Of course they did the opposite....  :-)

Ann Hayden in Wildwood, MO

Posted by Ann Hayden 636-399-7544, (Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri) over 9 years ago

George, maybe too many legislators connected to the banking industry worked on them the first time

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (Mapleridge Realty, CT 203-206-0754 ) over 9 years ago

It's about time, but I'm not sure the Government will get it right, more likely they will mess it up and we'll have huge delays while everyone gets used to the new form.

Posted by Susan Goulding, Northern CA - Tracy & Mountain House Real Estate (Crown Key Realty, Tracy & Mountain House Real Estate) over 9 years ago

I have no confidence in elected officials to properly identify any of our problems, to correct our problems, or to ensure that the cause of our problems is properly addressed to prevent a reoccurence of these problems in the future. Your post just confirms it. Thanks for posting.

Posted by George Bennett, Inactive Principal Broker, GRI (Inactive) over 9 years ago

George - it has taken me nearly all of the 2 years to figure out the new GFE.  I hope the new one coming out does not have a learning curve.  :)

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (Desert Gold Realty - Mesquite NV Homes For Sale) over 9 years ago

Yes the government screwed it up last time, but they'll get it right this time!  And if they don't, NAR will be there to make sure that they do!  And monkeys will fly out of my butt and bring me all the buyers I can handle!

Posted by David James (ReMax Real Estate Services Columbia South Carolina) over 9 years ago

Here's another crazy idea:  Put how much cash the borrower will need at settlement like the old GFE

Posted by David Zuckerman, Mortgage Broker - Low-to-no downpayment mortgages (Millennial Home Loans, LLC) over 9 years ago

Well, that's some welcome news George.  It would be nice to see an easily understandable GFE.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 9 years ago

George, combining the forms makes sense. Hopefully, they will also incorporate some of the information from the previous GFE form.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 9 years ago

George, once again the government did not look in the correct direct for the answers.  Maybe now (after two years) they will get this right.  I just don't understand why they didn't do this in the first place, and why it took them so long to come to the same conclusion we did in a matter of days... NOT YEARS.

Posted by Valerie Osterhoudt, ABR, Cromwell, CT Real Estate ~ 860.883.8889 (Johnson Real Estate, Inc.) over 9 years ago

The government threw darts at lenders for not clearly disclosing and then forced them to use documents that are more confusing than ever - just one more example of government involvement in issues they have no knowledge of and spending our tax dollars while they are at it. I try very hard to maintain a positive attitude - but when it comes to the government realizing these forms don't work - not feeling it - SO unlikely they will improve anything.

Posted by Susan Thompson-Solomons, Southern MD Real Estate-Solomons Specialist (Berkshire Hathaway Home Services McNelis Group Properties) over 9 years ago


  Good information , I was not aware of the fact that a new GFE was under consideration.

Posted by James Loftis, ( over 9 years ago

The GFE we are now using is definitely more confusing to borrowers The old GFE broke down the costs. The new GFE lumps them together.

The disclosure differs between brokered loans and lender funded loans, and on Gov't loans it shows financed MI as if the borrower will pay the fee out of pocket.

One of the worst changes is it doesn't have a signature line and if the borrower signs it we are out of compliance!

I don't know what idiot thought that one up.




Posted by Mark Robinson, Honesty, Integrity, Service (Geneva Financial, LLC) over 9 years ago
I know that combining the attorney / title insurance fees is really frustrating for the closing attorneys -- and confusing to the savvy home buyers who want a clear understanding of each fee. Hopefully the next version will be a big improvement!
Posted by Kerry Lucasse, Your Urban Nest Atlanta Real Estate Consultant (eXp Realty - Urban Nest Real Estate Group) over 9 years ago

I have been telling borrowers since the change, the good faith estimate has become the worst case scenario.  The is noting "good" on the form at all.  The other item you forgot to mention is there is no place for the borrower to sign the form unlike previous versions.

Posted by Ira Bodenstein, NMLS#: 445143 (PNC Mortgage) over 9 years ago

Looking forward to the consolidation. Thanks fo the news.

Posted by Fred Strickroot, Tampa Bay Area Homes For Sale (Fred Strickroot - HomeNet - Tampa Bay Area - 727-478-8997) over 9 years ago
Interesting. I do think that borrowers find all of these confusing even though they were intended to explain things!
Posted by Christine Smith, Exclusive Buyer Agent & Attorney, Canton, MA (Buyers Brokers Only LLC - over 9 years ago


This business is full of change thats for sure.  Thank you for the update on the next change coming to the lending world and for our buyers.

Posted by Kim Boekholder Utah Real Estate, Broker, Results Real Estate (Results Real Estate 801.580.5624) over 9 years ago

Thank you George for the update.  We await the change with baited breath. Focus and testing groups would be easier and cheaper to do, but I'm sure these politicians/attorneys will come up with a really well scripted and formatted form for all of us to understand...Not.

Posted by Lawrence Evans (Team Limejuicer/Remax) over 9 years ago

This is great news indeed! I recently had a client who was upset with ME for not understanding what his final monthly payment was going to be including taxes. I had given him the tax numbers, but I didn't realize that the taxes were not part of the discussion that he had with his lender.  He felt like the taxes put him over his max monthly payment budget and it was frustrating for all of us because he was already committed to buying the property.

Let's hope this all becomes a lot clearer soon!! 

Posted by Rebecca Riopelle, Broker Associate & REALTOR® (BLINK Realty Group) over 9 years ago

Yes, these new forms do little to protect the public or ourselves, AND they also make it easier for escrow and lender professionals to make simple mistakes in the form due to lack of itemization.

It is this itemization that makes it easier to double check our figures for accuracy. A group of professionals comprised from every state would make an excellent group to "beta test" thse forms and make suggestions before they are put into some ridiculous law.


Dan Walker

Posted by Dan Walker, Specializing in Gated Communities (Walker Realty) over 9 years ago

George, It would certainly be nice if the new form included those things you mentioned with clear disclosure. It certainly seems like it would take simple and total disclusure which could be included on a one page document! Thank you for the head's up! i can't wait to see the revision.

Posted by Tere Episale, Real Estate in TEREtory (Century 21 Crest Real Estate) over 9 years ago

Well written.


i have been saying that since DAY 1 when this came out.


These caused more confusion with the borrowers.


Mortgage professionas should have been consulted when this was being done(same with LO compensation this past April) but why would anyone listen to the people who actually do this for a living?

Posted by Dominick Gaccino (Dominick gaccino) over 9 years ago

one could hope.....

Posted by Gerald ( Jerry ) Santoro, Mortgage Broker/Mortgage Banker (Bayshore Mortgage Funding) over 9 years ago

Very good post,

Posted by Violetta Polyakov, Broker/Owner (Florida Home Consulting - Мы Говорим По Русски) over 9 years ago

Its about time!  I'm glad I end up doing my own closing cost estimate for the consumer because the new GFE is so far from understandable to the average person its not even funny

Posted by Jason Burkholder, Associate Broker, Realtor, e-Pro, CMS (Weichert, Realtors - Welcome Home) over 9 years ago

Today (September 19) is the last day you can post comments about the new prototype disclosure forms (read about it in this article: 


Posted by Dan Krell, Get the Facts Without the Pressure! (RE/MAX All Pro) over 9 years ago

Well, it's great that the government regulators have decided to try to fix a problem they created.  I hope they don't end up making it worse.

Posted by Karen Steed, Associate Broker Haralson Realty (Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton) over 9 years ago

Hopefully, this new document will be accurate.....  but keep in mind WHO is developing the form!!!

Posted by Kathy Opatka, Serving Ocean City, MD, & The Delaware Beaches (RE/MAX CROSSROADS) over 9 years ago

I agree with Sharon (Comment 1) --- focus groups would be a tremendous idea!

Posted by Rick Schuster (Jaycee Realty, Inc.) over 9 years ago

Wouldn't it be nice if the government listened to the professionals BEFORE making these kinds of decisions in the future. Reminds me of the situation with Fannie Mae right now. They own almost 250k homes and don't know what to do with them. Um, I know...should have approved those short sales....

Posted by Nathan Tutas, Your Central Florida Real Estate Expert (Tutas Towne Realty, Inc.) over 9 years ago

I hope they re-vamp the HUD-1 in the  process. Surely another example of the government trying for more transparecy but making the whole statement more confusing for everyone especially the consumer.

Posted by Judy Griffin (Keller Williams Emerald Coast - Niceville) over 9 years ago

George, thanks for letting us know there is a ray of hope. The current GFE & TIL only confuse the consumer more than ever.

Posted by Barbara Charlton (inactive - license is on ice with State of MN) over 9 years ago

Thanks for this update on these two....I've reblogged your post for readers in my area, Triad North Carolina!  

Posted by Doug Patterson, CRS, ABR, Broker-In-Charge (Park Place Real Estate, Broker-In-Charge) over 9 years ago

George when ever government gets involved things get larger but more complicated. It was a good idea, it meant well but the execution of it seems to fall flat. Thanks for sharing this story

Posted by Scott Godzyk, One of the Manchester NH's area Leading Agents (Godzyk Real Estate Services) over 9 years ago

Thanks George.  I am interested to see how this turns out. 

Posted by David Krichmar, ( - Legend Lending) over 9 years ago

Do you really think that a President who is conteplating the elimination of the mortgage interest deduction, really gives a flip about getting some pesky loan for right?

Posted by David Herren (Best Atlanta Properties, LLC) over 9 years ago

George, thank you for the heads up. After living in DC for 25 years, the odds are the new and improved forms for transparency and disclosure will only become longer and more complicated. Anything created by a committee tends to lack vision, efficiency and common sense.

Posted by Emily Medvec, Realtor | Serving Santa Fe & Northern NM (eXp Realty LLC) over 9 years ago

Repealing this mess along with other regulations will lower costs for the borrowers as well as make things easier to understand.


Whoever thought these forms were of value is an idiot


I have yet to have a borrower push me into explaining the new GFE. I show them the old GFE and say "Here is the new GFE..... it will only confuse you" and leave it with them.

I don't want to get political on your article..... But this can be changed on elecion day. ;-)


Posted by Tom Burris, Texas/Louisiana Mortgage Pro - 13 YRS Experience (NMLS# 335055) over 9 years ago

I can only hope that they listen to people who are in the business and deal with this on a daily basis. Consumers are more confused than ever and the "new" forms only made it worse. Thank you for the information that consolidated forms are in the works. I'm going to re-blog this for my clients in the Northern VA/Washington DC area!

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) over 9 years ago
I hope they shorten and simplify. I suspect they will make it longer and more confusing. Seems like government does a good job making things more complicated and more expensive.
Posted by Alan Grizzle, Full Time Realtor, Lifelong Resident of Dahlonega (Chestatee Real Estate) over 9 years ago

Don't forget - the new forms also FAIL to tell you how much money you need at closing - the old GFE did.  The only two questions the GFE really needs to answer:

  1. What is my monthly payment?
  2. How much money do I need at closing?

After 8 years of work, the government agency managed to take a 1 page form that answered those questions, expanded it to 3 pages and left those two answers out.  Thanks!

Posted by Tom Tousignant, CMPS, NMLS id#56471 (Fairway Independent Mortgage NMLS id #2289) over 9 years ago

I have no hope for this one...

Posted by Beverly Femia, Broker Realtor Stager - Greater Wilmington, NC Are (BlueCoast Realty Corporation) over 9 years ago

Like disclosure was ever or will be transparent! NO BANKS have the keys to the house and THEY JUST ROBBED US ALL!!!!!!!!

Posted by David Evans, HUD NLB Cumming GA (RE/MAX TOWN AND COUNTRY) over 9 years ago

You can check out the latest two proposed forms at the following link.

Posted by David M. Dwares, Title guy with a broker license (Title Professionals Corp.) over 9 years ago

Great article.  But actually Barbara (#3) summed it up in her first sentence..........."If only the government understood"............Enough said!!!

Posted by Woody Edwards, A Realtor® Who Answers His Phone! (First Choice Realty, Inc) over 9 years ago

Good post, George.   And, Fairway Independent Mortgage does kind of sum it up for many -- 1) What is my monthly payment, 2) How much money do I need at closing.  These are the two primary questions, of course.  However, the lending industry was not being totally transparent to borrowers and foisted hidden costs on them at closing that left people in a bind at the closing table.   Undisclosed yield spread premiums; last minute changes in costs that were not previously disclosed - the LO (loan originator) industry was due for a review and overhaul to facilitate disclosure.  They got a goodly portion of that, on the first pass.  Now it looks like another review and update is in order.  Good.  

Maybe the consumer protections that need to be in place finally will be.   Looking forward to the updates and thanks for posting, George Souto!  

Posted by Andrew Lietzow, MBA-Exec Dir Iowa Real Estate Investors Association - (IaREIA | Iowa Landlord Association) over 9 years ago

George thanks for bringing this to ever ones attention.  We can't influence Washington unless people like you tell us what is going on.  Washington should hasn't.

Posted by Shay Campbell, Raleigh, NC (Universal American Mortgage Company) over 9 years ago

I think sometimes less is more. Most buyer's just want to know what their interest, payment, and out of pocket costs are going to be, and the rest of it is less important. The more transparent they try to make it, the more complicated and confusing it becomes.

Posted by John Cobb, REALTOR - Warner Robins Georgia Homes for Sale, Subdivisions, Foreclosures, Real Estate, New Homes (Fickling & Company) over 9 years ago

All of these proposals are classic DC. They take 2 pages, turn them into 5 pages which we have to supplement with another page (Initial Fee Worksheet which is the same document as the old GFE) so that the numbers make sense and the two figures the borrowers want to see (total PITI payment and total cash to close) are disclosed, and then add on an "anti-steering" disclosure mandated by the Federal Reserve Board to improve our "transparency" and help the borrowers "better understand". Nothing coming out of DC is transparent. Not the current forms and not the new CFPB proposed forms. The CFPB is proposing that we quote homeowners insurance within a 10% tolerance, which is a new requirement for us if this CFPB proposal sticks. The CFPB is still lumping figures together, and any new version will likely require the old detailed GFE now known as the Initial Fee Worksheet.

And the new Obama jobs bill takes again from homeowners choosing to take out a mortgage, reducing the mortgage interest deduction and capping the reductions on the ultra-wealthy. Really? How is taking a few hundred dollars from homeowners choosing to mortgage helping create jobs? Pay for things on the backs of homeowners. Sounds like a grand DC plan.

Posted by Melanie Thompson, Registered Mortgage Advisor (Mortgage Equity Team) over 9 years ago

Could it be that the title companies/attornies/escrow firms wanted the fees obscured? Yet another way to make it hard to know what you are in for... sadly, this is the state of our industry and its lobbyists...

Posted by Paul Silver, Rhode Island full service real estate firm over 9 years ago


Notice that the Paperwork Reduction Act didn't apply here as in most cases where it's actually needed. Now we'll probably end up with a 10 page form that still won't have the information consumers need.

Posted by Gary Burleson, Myrtle Beach Homes, Condos, Foreclosures, Investment Propery (Beach Water Realty - over 9 years ago

Government written guidelines are the equivalent of sanitation workers writing procedures manuals for brain surgeons.

No offense to sanitation workers!

Posted by John Dotson, The experience to get you to the other side! (Preferred Properties of Highlands, Inc. - Highlands, NC) over 9 years ago

it would also be a significant step in the right direction if the new regulations require lender disclosures everytime credit is pulled that give the potential borrower specific instructions on what information they must provide that will obligate their potential lender to provide them the HUD standard Good Faith Estimate.  For GFE's to be useful and effective, they must become commonplace.

Posted by Daniel H. Fisher, MCRP - Charlotte Real Estate, NC or SC ( (704) 617-3544) over 9 years ago

Hurray!  Hope it will be a real improvement.

Posted by Marsha Cash (RE/MAX Advantage) over 9 years ago

What a complete waste this whole 2 year period has been. The new documents provide less information to home buyers, create more delays, and cure costs for lenders on items they have no control over. Classic example of the law of unintended circumstances. Let's hope the vetting of the news forms is better than the previous ones.

Posted by Mike Lesmeister, CRMS, CMPS (CMG Financial) over 9 years ago

Great post.  Can't wait to see the final result.  Better yet, I'd like to read your comments.

Posted by Jonathan Mickles over 9 years ago

Great post - well thought out & great points.

Seems like nearly everything our goverment tries to fix only gets worse.

PS Not sure how you are ending up with the spam postings for online stores, if people have to log in to post...???


Posted by Edith Schreiber, Dallas Area Real Estate (Luxury Homes, Move Up Buyers, 1st Time Homebuyers, New Construction) over 9 years ago

Hey George, Hope that they get it right this time.. Isn't it funny that all these rules and regulations come from people who have never been on the front lines and worked with it on a daily basis. My wife is in the local school district and all their decrees are the same way. They come down from non educators. Simply amazing! 

Posted by Rob Hurst, Real Estate Broker, Kendall & Comal Counties (KenCom Real Estate) over 9 years ago

I have seen the rough draft. Same crap different format.

Still don't address what people need to see - to know what they are getting.

We have people putting this together who have never been in Real Estate or Lending, just like we have people putting together Jobs bill, that have never ran a company.

Post office is doing well- wonder what health care will look like?

My point is let people draft this stuff that are actually in the business!

By the way I didn't have my CPA draw up the plans and finish my basement- I had a Certified Contractor.

Great Post!



Posted by Ben Yost - 303-587-4297, FHA, VA, Conventional - Mortgage Loans in De (First Time Home Buyer, Mortgage Rates, Pre-Approval) over 9 years ago

I think your idea to wait until the forms arrive so we can then judge them is a good idea.  I've gotta say though, I will be really surprised if the forms end up being much of an improvement.  We can only hope.

Posted by Adam King, Adam King (Metro Brokers - Kings Kastles Denver, CO) over 9 years ago

The camel is a horse designed by government committee! The government most likely needs 100 new employees to come up with the combined form - and never talk to those who use them. How about accountability for the government employee - a loss in pay when they screw up!

Posted by Steve Davis, Carlsbad CA (Davis Coastal Properties) over 9 years ago

As a mortgage lender since 1995, I have asked all past clients which new version they like. Let's ask the consumer what they want, of course we as lenders understand it we look at this stuff all day long.

Its not in the paperwork it is in the person who describes it.

I know many Loan Officers that don't even understand all the disclosures.

Today we spend a ton of time originating the loan including keeping it together up to close.


Posted by Ron Aguilar, Mortgage & Real Estate Advisor since 1995 (Continental Mortgage) over 9 years ago

Well, at least they understand that in their last attempt they didn't make anything better. I'm betting the form gets longer still, but hopeful that it will be more user friendly.

Posted by Todd Anderson, Park City | Deer Valley Real Estate (You In Park City group - KW Park City Keller Williams Real Estate) over 9 years ago

I can't believe the original form was created without input from the parties that USED the form in the first place.  Let's hope this one is an actual improvement.

Posted by Cara Marcelle Mancuso, Call a Marana neighbor, I'm THERE! LONG REALTY (Long Realty - Dove Mountain, Marana AZ) over 9 years ago

Good post George - The forms are definately more confusing for borrowers.  Most borrowers shrug when they are told that all fees are lumped onto the GFE regardless of whether buyer or sell is paying the cost.  I think the only reaso the GFE flys is that there is no place for the borrower to sign.  Maybe next time some indusrty input will be used.

Posted by Mike McIntosh, FHA VA CVL Home Loans California - 916 780-6400 (Sierra Pacific Mortgage Company, Inc.) over 9 years ago


        Great Point!

What comes out of Washington always seems to be slanted to the needs of special interest groups rather than to the needs of the "people" (at least on the first go-round). Let's hope that they get it right this time!

P.S. Let's hope that NAR's "Political Survival Initiative" keeps this in mind as they attempt to sway opinion in Washington.  

Posted by Bob Bustamante-Associate Broker, Greensburg (Berkshire Hathaway HomeServices The Preferred Realty) over 9 years ago

George...I hope they also address the confusion many buyers have regarding the Owner's Title Policy...I'm not sure why the Federal Government felt they needed to dictate who was to purchase that coverage.  Here in AZ, it is normally provided by the Owner (seems to make sense to us!) and it's SO CONFUSING when the escrow officers have to charge it to the buyer and then back it off. 

Great post, thanks for the information.

Posted by Dori Wittrig, Fountain Hills & Scottsdale, AZ (Jay Schlum & Dori Wittrig, Sonoran Lifestyle Real Estate) over 9 years ago

Thanks for the education.  I learned a lot about this subject that will help me answer clients questions. Great post will have to read your other entries.

Posted by Patti Lyles, DIVORCE, SHORT SALE, FORECLOSURE SPECIALIST (Century 21 Showcase, REALTORS®) over 9 years ago

Timely post and I am eagerly awaiting something better.  The present document is confusing, incomplete and the absence of the payment info is just wrong.

Posted by Marge Piwowarski, Phoenix AZ Horse Property, LLC (Phoenix AZ Horse Property) over 9 years ago

So true George. I think you stated what we were all thinking. I think the gate was left open for a lot of non-disclosure. I was trying to figure out accurate closing costs the other day and had to look really closely. Hope they get it right next go-round! Thanks for the post!

Posted by Jana Bryant, Rick Steiner & Associates, CDPE (Atlanta Communities) over 9 years ago

I look forward to having a document that is easier for our clients to understand.

Posted by Sharon Parisi, Dallas Homes (United Real Estate Dallas ) over 9 years ago

Hi George,  Thanks for an excellent review.  We spend so much time to accomplish so very little !  Adding pages to a disclosure form doesn't necessarily mean we get better info  -  only more info.

Posted by Bill Gillhespy, Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos (16 Sunview Blvd) over 9 years ago

The CFBP has two of the latest "prototypes" online where you can view, comment, and vote on your favorite.

Go to  Do it now!  They need your input!!

This is the fourth round of draft comparisons, and what I find truly odd, is that the current form is different than the last two we voted on. I thought they were getting close with the Camellia form in round 3.  Now they've gone and added a "TIP" - Total Interest Paid (over lifetime of the loan).  You think you had problems explaining APR... wait till the consumer sets their eyes on this percentage!  Oy vey :0


Posted by Jana Holmstrup (Jana Holmstrup - CCO - Kings Mortgage Services, Inc.) over 9 years ago

Explain all the title insurance charges also.....

Posted by Laura Scott (Pilkerton Realtors) over 9 years ago

If it is from the know it is a mess from the get go. Doesn't matter what industry...they can mess up opening a paper bag.

Posted by Mike McCann - Nebraska Farm Land Broker, Farm Land For Sale 308-627-3700 or 800-241-3940 (Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska) over 9 years ago

Uhm - guys - hate to say this - but Washington is involved, I seriously doubt there will be a solution in the near future, just check how long this is taking... 2 years to crank out a form... 

Ya, there's something wrong.

Posted by Terkel Sørensen, Realtor, 951.805.0773 , Bank owned and Short Sales (Real Estate Places) over 9 years ago

sounds like they are moving in the right direction but unfortunate that they are stumbling along the way

Posted by Jeremy Joslin, Professional Real Estate Marketing and Sales (Coldwell Banker Residential Brokerage) over 9 years ago

What should we expect, an efficient and comprehensive regulation from the government? There's a reason why layers and layers of regulations are created by government agencies, have you figured it out? They want to perpetuate their existence. Vote the bums out, two year term limits for all politicians and no perks or lifetime benefits. 

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) over 9 years ago

Maybe because it is Monday? I don't know - I'm not feeling optomistic about anything they try to do in Washington. Making the GFE 4 pages (including the service provider list) and making us disclose six to eight of them in a file due to every little change is annoying at best.

Consumers care about what their costs are and what their rate is, period. What the new GFE did was further complicate the disclosure of how brokers are paid while continuing to allow them to believe bankers aren't paid.

Not allowing fees to go up within 10% range could have been accomplished without all the aggravation of continually disclosing and re disclosing, chewing up trees and time, not to mention more importantly every new GFE produced creates an opportunity to make a mistake.

I produce a GFE and then the lender does one. With every change we do it all over again. Add to that we have to go on some lender websites with which we are not all so familiar and make changes in fees. It is a total waste of time, resoures and money.

My experience so far - errors made are being absorbed by the lender because they are making the errors when they re disclose. How long will that go on until they ratchet up rates or fees? When a borrower knows what he is getting he should be charged that vs getting a credit at close because something was left off a new(er) disclosure. When lenders raise rates and fees, it will affect EVERY borrower, not just the one who happened to get the unexpected $900 credit.

Like I said, maybe because it is Monday? but my feeling is the ultimate goal is to frustrate brokers so much that they throw in the towel and go work for the banks who do not need to disclose what they make on a loan.

Posted by Dora Griffin, NMLS 6380 (D A Griffin Financial.LLC) over 9 years ago

The banks are not even using the new disclosures as intended. They are using WORKSHEETS instead of a GFE. The GFE is not being given to the buyers in most cases until the week before close. We can change the rules, unless we put TEETH into the rules the games will just continue to play the game.

Posted by Richard V. Foster, Esq., Broker (58356) - ABR/M, CREN, CRS, GRI, RRG, SFR (Nevada Perfect Homes) over 9 years ago

I have to smile when I see post #89. The banks are not using the appraisal independence rule as required, but what is anyone going to do about it? The same will apply to GFE changes.

When I talk to a borrower to whom I'm quoting a better rate than the local bank, but they get obsessed with the fact I'm getting paid to work and they know it vs the banker who is also getting paid but does not need to disclose how much, it is quite simply just annoying.

Posted by Dora Griffin, NMLS 6380 (D A Griffin Financial.LLC) over 9 years ago

i used to be a Lic. Mortgage Broker until dec. 2010. i used to use Calyx program for all the loans. The GFE  and TIL got printed according to the information we put in when taking the 1003 loan ap. it was everything we needed and customers were told +/- what was going to be in the closing statement, and they were happy with that and we all went to closing. Everything there was disclosed. I think that the reason these bureaucrats "created" the new GFE and TIL is to confuse people as well as create more paperwork for everyone concerned. Forget about the fact that more trees have to be cut to accomodate the extra paper.

Jerry Dragoon, GRI

Broker/Owner Select Properties of South Florida


They other key thing to note about the new GFE form... there is no where to sign the form. Sure, the borrower signs a letter that reads they 'received the GFE' but who is to say that the lender gave the right GFE or did not change anything? It would make more sense to have the signature right there on the form.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 over 9 years ago

Thank you for the heads up.

Posted by Jim McCormack, Nashville Short Sale REALTOR - Stop Foreclosure (Nashville Short Sale Specialist - Jim McCormack - Edge Advantage Realty, LLC - 615-784-EDGE (3343)) over 9 years ago

I tend to rather know the details. For example I want my tax and insurance funds separately. Like you, however, I reserve judgement.

Posted by Vickie Nagy, Vickie Jean the Palm Springs Condo Queen (Coldwell Banker Residential Real Estate) over 9 years ago

I've always had the opinion that forms were meant to help us rather than be our masters.  The forms in question are our masters.

Posted by Richard Dolbeare, R(B), R(B), ABR, CRS...Hawaii Multi-Island Specialist (eXp Realty) over 9 years ago

Good to know. Forms should be something we can trust, not something to be suspicious of.

Posted by Stacey Mayer, ( over 9 years ago

I have all the confidence in the world that they will screw it up again.  This is what we spend all our tax dollars for after all!

Posted by Jirius Isaac, Real Estate & loans in Kenmore, WA (Isaac Real Estate &TriStar Mortgage) over 9 years ago

The bureaucrat that though that things would be simplified and more transparent by making the form longer is a complete moron.

Posted by Rob Arnold, Metro Orlando Full Service - Investor Friendly & F (Sand Dollar Realty Group, Inc.) over 9 years ago


Thanks for providing this update. It's true. We knew from the minute we saw the present GFE that it wasn't done well. 

Posted by Kathleen Sheridan (WEICHERT, REALTORS ® - McCarthy Associates) over 9 years ago

Hi George - It's really coincidental that this weekend I was looking over the GFE and TIL from two different lenders for someone and I thought it was not helpful that the forms weren't the same so it made comparing very difficult.  When they make up new forms, I hope that everyone uses the same one so it will be easier to compare.  Congratulations on another great featured article!

Posted by Peggy Chirico, REALTOR® 860-748-8900, Hartford & Tolland County Real Estate (Prudential CT Realty) over 9 years ago

should we expect antyhing less form Washington???  Most in Washington believe that GFE is an acronym for GirlFriend Experience!!! LOL

Posted by Paddy Deighan JD PhD, Paddy Deighan J.D. Ph.D ( over 9 years ago

Your points are good, but in addition to that you have the arbitrary time constraints that make lenders crazy!  When you lock the loan, even if it is the same rate you initially disclosed, and you blow the 3 days- oh my! you are out of compliance!  They create havoc as the borrower wonders why he keeps getting so much mail!  

Posted by minette goldsmith (Fairway Independent Mortgage) over 9 years ago

It's a start for sure. Thanks for explaining.

Posted by DEBORAH STONE (Balboa Real Estate San Diego, CA) over 9 years ago

George, first of congrats on a well deserved really said what so many have been thinking.  I surprised that it's taken this long for the powers that be to realize what a mess that made of it.  The new UAD for my going down the same path.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) over 9 years ago

This is great.  Please keep us updated.  Thanks for the post.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) over 9 years ago

By GEORGE you have it!

Posted by Mark Pease (First Commerce Credit Union) over 9 years ago

I hope its an improvement 

Posted by Michael Singh,Broker (Singh Real Estate) over 9 years ago

Great Post!! Thank you for sharing George!

Posted by EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD, Short Sales, Foreclosure & Bank Owned Real Estate (LAROSA REALTY) over 9 years ago

It's the old -we're from the government,we're here to help you ! Taking 1 page forms up to 2-3 pages should have been their first clue !

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) over 9 years ago

"In fact these two forms not only fall short of what they were intended to do, they may even be accomplishing the opposite."

This is exactly true.  The new GFE drives me absolutely crazy.  Even after two years and doing transaction after transaction I still think it's confusing and definitely not easier or more transparent. The fact that fees are "bundled" and aren't listed separately is ridiculous.  -Kasey

Posted by Kasey & John Boles, Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties (Jon Gosche Real Estate, LLC - over 9 years ago


It is a head-scratcher, to put it mildly. You just wonder how it ever got approved. There are knowledgeable mortgage people in the government.

Posted by Esko Kiuru over 9 years ago

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