The New Good Faith Estimate is here.

Starting January 1st 2010, lenders will start using a new Good Faith Estimate(GFE). The 2010 GFE is HUD's attempt to make it easier for borrowers to understand the fees and terms of their home loan. There is only one thing it has really done, made it more confusing for borrowers.

First, the old GFE was one page, 2010 GFE is now 3 pages long.
Second, the old GFE gave the borrower all the information needed to see how much the closing costs are, the rate, the amount needed for closing and the total of payments on the new loan. 2010 GFE requires additional disclosures to tell the borrower how much the down payments are, how much the total payments are, a signature disclosure for the borrower to accept the terms of the 2010 GFE, but (if you can believe it) the 2010 GFE does not have a signature line.

There are some good changes that the 2010 GFE offers.
First, the fees cannot change more than 10% (zero change on some fees) from the first time the 2010 GFE is given to the borrower. The GFE will only be issued once a property address is established. For purchases NOVA Home Loans will issue a disclosure that is very similar to the old GFE so borrowers have all the details of the transactions. Once a property is established, the 2010 GFE will be issued within 3 days. For refinances the new GFE will be issued within 3 days of the application date.

Second, any changes to the loan must be requested by the borrower in writing. If the lender needs to change the loan terms, it must be because of a change in legitimate circumstance. Lenders and Loan Officer cannot just make changes in order to charge more fees closer to closing.

Third, the 2010 GFE has a section that allows the lender to show 3 different pricing options for the borrower to choose from. The first option will be a proposed loan, the second will be a option for lower settlement cost/a slightly higher rate and the third will be for a lower interest rate/slightly higher closing costs. These options will show the borrower the difference in the payments for paying a discount or premium for their loan. This will be very help full for the borrowers in choosing the right loan for them.