- Sacramento Real Estate Adventures - Your Sacramento Real Estate and mortgage blog!

If you are applying for a Sacramento mortgage right now... Prepare for a virtual standstill with the new Good Faith Estimate 2010 and all the misunderstandings that come with it!

As I am writing this post, I have been on hold for 2 hours now trying to get in touch with the folks at Calyx Point (an origination software company) so I can figure out what is going on with my new software update that addresses the new Good Faith Estimate for 2012.

Some of you may wonder why I have not written about this huge change to our industry yet. The truth is this is such a new way of disclosing our fees to our clients, I wanted to wait and see how the new guidelines were interpreted.

You see... when a client received a good faith estimate (in 2009) for their Sacramento mortgage, all the fees were broken out and the borrowers could see who is paid what. Now the new Good Faith Estimate (as of January 2010) lumps all of these fees into groups and the borrower is no longer able to see a real breakdown of each fees.

It seems weird to me that the powers that be believe giving a client less information helps them make a better decision. There are some good changes to the way we disclosure to clients in that it is laid out in a much more user friendly fashion that makes it easier for a non-mortgage professional to understand.

I just wanted to write this quick post to warn Sacramento mortgage clients and Realtors that they should expect some delays with their escrow(s).

Much like when we had changes to disclosure requirements in 2009... everyone (Sacramento mortgage brokers, mortgage bankers, whole sale lenders, HUD...etc.) all had their own way of interpreting the guidelines. There was a 2-3 week period where most of our files where not moving at all because everyone involved was over-analyzing the rules and were afraid to screw up. At that time, I had to make several calls to Buyers Agents and Listing Agents explaining what was going on and ask for extentions for escrows.

Now I can't say that will be the case for this new way of doing business, but I can tell you that this is such a big change to our industry, there just has to be some growing pains involved.

Not only is the Good Faith Estimate changing ...so is the HUD Settlement Statement. This means that title companies are also being forced to change the way they do business. The HUD Settlement Statement breaks down the costs involved for each real estate transaction that you receive at your loan signing appointment and a final version after your escrow closes.

So prepare yourself for another bumpy ride and put on your patience cap.

It is what it is... and complaining about it is not going to help anyone. At least that is what I am trying to convince myself as I have now been on hold now for 2.5 hours. ;)

More to come....