My New Blog

In the last few years, there has been a dramatic change to the way American businesses are doing business. The government is keeping a close watch on those corporations that have excessive pay structures for their executives. Real estate in the last 2-years has decreased in value. Many people are in foreclosure or will be going into foreclosure. Experts and Congress are blaming the mortgage industry for placing borrowers in risky loans. Allied Mortgage Group is conservative and would never place borrowers in risky loans.  They claim borrowers didn’t know what type of loan they had applied for. Congress said the Good Faith Estimate and settlement paperwork needed to change. The loan package you now get at the settlement table is different. It can take longer to sign the closing documents at the table. The big change is how the Settlement Statement (HUD 1) looks.

The Settlement Statement is now 4 pages instead of 2 pages. The first page of the Settlement Statement is the Summary of Transaction. This page has not changed. The Summary of Transaction shows both the seller and buyer’s total costs and fees. The breakdown of the fees is on the 2^nd page. The 2^nd page is divided into sections by numbers starting with 700 and ending with 1300. These numbered sections correspond to the numbered sections on the Good Faith Estimate that is given to the borrower at the time of the application. Starting with section 800 the origination charge includes origination, discount points, and other fees bundled together unlike the old Settlement Sheet. The new Settlement Sheet cites where you can find the charges on the Good Faith Estimate such as the application fee. The old Settlement sheet list all fees and cost. The 3^rd page of the Settlement Sheet compares the cost listed on the Good Faith Estimate with the Settlement actual costs. Congress wants the lenders, such as Allied Mortgage Group, to be accurate on the Good Faith Estimate. This is confusing to you, the borrower as well as to us. Most loan officers list higher fees on the Good Faith Estimate since fees could change such as the origination and discount fees. At Allied Mortgage Group, our loan officers always try to be accurate and precise with the fees so there are no discrepancies at closing. The bottom portion of the 3^rd page is the loan terms. The 4^th page is the signature page.

The mortgage industry has had many changes in regulations and laws over the years. The New Year has seen more changes than in previous years. At Allied Mortgage Group we keep up with the changes to assist you in understanding the changes. We believe in educating our customers. This is why so many of our clients stay with us.

To get pre-approved click Apply Now.