We’re Not Laughing – Okay Maybe We Are

Humor could be described as a spice of life that can lighten a mood, liven a moment or linger as a memory.  Sometimes it can bring a full-roar laugh, a simple smile or like now, a sigh of relief that the topic does not apply to you.  We recently read an anecdote on the recent RESPA changes and how some loan officers might be inclined to respond.  Allow us to share …

ARE  YOU HAVING TROUBLE EXPLAINING RESPA TO BORROWERS?

If RESPA changes are the final blow – swaying you to consider a simpler career path, say neurosurgery or something, you are not alone.

I have to vent for a minute, because I know you are with me on this one. Let’s see….

A new borrower comes to you because his Realtor told him that you are a fabulous loan officer and he needs to get pre-approved and get a Good Faith Estimate.

You look the new borrower square in the eye and have to say, “Wonderful! But I can’t give you a Good Faith Estimate because you haven’t identified a property. But I can give you this other “Non-Binding Settlement Estimate” form that my legal department has authorized, that has a 2-page disclaimer stating that you can’t hold me to any of these figures.”

So the new borrower, with a confused look on his face, takes your new form and goes back to his Realtor. The Realtor calls you trying to figure out what you said to the new borrower who now, doesn’t feel so confident about you or anything else in this transaction. You explain. The Realtor calms down.

The new borrower comes back with an identified property and says; “Now I want a Good Faith Estimate.” You prepare one, in perfect accordance with the new RESPA procedures and hand it to new borrower. He gasps. “This is $3,000 more than the previous estimate you gave!”

“Oh, don’t be alarmed,” you say in your most toddler-calming voice. “This isn’t what you are really going to be paying. This is just how I have to disclose it to you.”

The new borrower gives you a sideways suspicious glance, “But what about all the fees the seller is paying on my behalf? I can’t find a credit on this form for those.”

“Don’t worry…it will all work out at closing. This is how we protect you now. We give you inaccurate information all the way up until you actually close on the property. Isn’t that fun! Kind of like a surprise party!” you happily chime – beaming like an idiot while beads of sweat run down your torso.

The new borrower marches out to his car in tearful frustration and calls the next lender on his list.

Scalpel anyone?

This could not be farther from the truth for us at Awareness Home Funding.  The new Good Faith Estimate (GFE) is really a very simple document that helps you, the client, actually understand the real cost of acquiring your home loan.  It lets you know where you have choices in the services you will need, such as a home inspection.  It tells you what fees should not be changing by more than 10%.  And if they do, there will be a good reason, and time for you to understand what just happened before the loan process continues.  It also tells you what fees will not change at all.

So why don’t some loan officers like the new regulations and required forms?  Why can’t they explain the information it details for you?  Why can’t they provide the new GFE for you upfront?  Why such the cloak and dagger approach to helping their clients?  (Now this part, we do find really funny.)

Check us out (http://www.awarenesshomefunding.com/).  Give us a call (866-982-9273).  Let us help you understand the loan process.  That is why you go to a professional in the first place, isn’t it?

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