Originally published Saturday, December 6, 2008 at 12:00 AM
Comments (2)
E-mail article
Print view
The good-faith estimate is getting better
A change in the way real-estate closing costs are determined could help borrowers save money while simplifying mortgage shopping.
New York Times News Service
After years of debate, federal regulators have decided to revise a key disclosure form required by lenders.
The change could help borrowers get a better handle on closing costs while simplifying mortgage shopping.
The modifications are aimed at the so-called good-faith estimate of mortgage costs, which loan officers must present to borrowers during the application process.
The U.S. Department of Housing and Urban Development, which oversees many of the nation's mortgage regulations, recently unveiled the new, simpler format for the good-faith estimates.
Industry critics have long charged that lenders or brokers sometimes inflate the estimated costs of third-party fees and pocket the difference after they receive the borrower's check on settlement day, or that they may bundle costs so consumers have little way of knowing what has been inflated.
Starting in 2010, however, the good faith estimate must offer settlement charges within 10 percent of the amount the borrower ultimately pays, and list all their charges separately.
Because the new rules will increase transparency, borrowers may find it easier to shop around for the best deals.
A HUD analysis suggested that the new estimate could save a typical borrower about $700 on settlement fees.
Copyright © 2008 The Seattle Times Company
Owe more than your home is worth? You can still refinance, but it's complicated
"Jewel-box" houses are built smaller, smarter
Five good tips for mortgage shoppers
Nation's Housing: New appraisal rules under fire

Tribal Fireworks Rivalry
The Fourth of July marks a long-standing fireworks rivalry between two clans of a Native-American family in Suquamish.
Entertainment | Top Video | World | Offbeat Video | Sci-Tech
shopping

events for Saturday, Jul. 4th
- Kuhlman Summer Sale
- Alhambra July Sale
- Seattle Premium Outlets July 4th Summ...
- Evo Independence Sale
editors' picks
More shopping guides- Palin links resignation to 'higher calling'
- Yakima teacher reprimanded for sending 5-year-old student home with bag of feces in backpack
- Plasma and LCD beware; OLED screens ready to go mainstream
- 6 jurors swear a cop's wife swayed panel in Kent civil rights case
- Fire sends service providers scrambling
- Going to Gas Works Park? Good luck
- Fourth of July festivals and fireworks in Seattle, the suburbs and beyond
- Woman accuses Sounders FC player Nate Jaqua of sexual assault, seeks more than $10 million
- More than 1 million seek tix for Jackson memorial
- Rob Johnson's double in 11th powers Mariners past Red Sox, 7-6
- Palin resigning as Alaska governor
746 - Seattle Mariners at Boston Red Sox: 07/04 game thread
244 - Woman accuses Sounders FC player Nate Jaqua of sexual assault, seeks more than $10 million
99 - Reports: NKorean missile arrives at launch site
96 - Palin's Declaration of Independence
73 - Mariners score unlikely win over Red Sox in battle of bullpens
58 - Rob Johnson ties a club record as Mariners win 7-6 in 11 innings
54 - Hatred for the NBA runs deep, but don't take it out on the players
51 - Man pistol-whipped after argument at nightclub
40 - Former NFL MVP McNair killed
39
- Plasma and LCD beware; OLED screens ready to go mainstream
- Going to Gas Works Park? Good luck
- Liven up Fremont's attempt to break a world record for a 'zombie walk'
- Merchant Marine veterans fight for recognition
- Lynnwood's City Bank gets tighter scrutiny
- Yakima teacher reprimanded for sending 5-year-old student home with bag of feces in backpack
- Retail Report | Pet-supply shops grow while other retailers fade
- Palin links resignation to 'higher calling'
- Fire sends service providers scrambling
- Oregon woman obsessed with rabbits back in jail

