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New HUD – Consumer Protection or Real Estate Industry Nightmare?

Fresh off revolutionary changes implemented in 2009, Housing and Urban Development, in partnership with the newly formed Consumer Financial Protection Bureau, will be debuting yet another version of the Settlement Statement and Good Faith Estimate. This time however, we get to vote on one of two forms.

You can review the two choices – code named, “Mimosa” and “Sassafras” (you can’t make this up) by logging into the CFPB “know before you owe” website and using the industry tool. Perhaps better codes names would have been “crack” and “dope” since this seems to be more indicative of the mindset of the bureaucrats that think this is a good idea.

Really? The last attempt at simplifying the process, increasing understanding and protecting the consumer resulted in our current HUD which most agree complicated the process, made costs less transparent and presented an administrative nightmare to real estate professionals. Of course, now that we have another federal government agency involved, surely we’ll see much better results (read with healthy dose of sarcasm).

Here is a novel idea – how about before you sign documents and commit yourself to what is likely the biggest purchase of your life – take the time to understand the terms of your loan, the costs associated with your purchase and if your family can afford the payments. Common sense is rarely dispensed, especially by the feds.

Know Before You Owe > Consumer Financial Protection Bureau.

Tags: CornerStone Title, HUD, Real Estate Contracts, realtor, realtor education, title insurance

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