New Good Faith Estimates, HUD-1 Form Provide Benefits to Borrowers

New RESPA Regulations, HUD-1 Effective January 1, 2010

Changes under the Real Estate Settlement Procedures Act provide some improvements to borrowers, making it easier to compare loan terms and committing lenders to stick with their quoted fees.

The new Good Faith Estimate (GFE) will be uniformly used by all lenders so that borrowers will be able to compare settlement charges and loan terms being provided by different lenders. Lenders will be committed, for the most part, to honor the estimates provided. The new GFE will represent all the costs of the entire transaction. The costs are not specified as to whether those costs are borne by the buyer or the seller. The GFE will not include taxes, insurance, homeowner association or condo fees, as those are separate from the loan. It is expected that with the loan transaction information, buyers will be able to make better informed choices among lenders. 

The HUD-1 will be synchronized with the GFE and will show the figures from the GFE on the final settlement sheet. The new GFE is likely to encourage greater consumer shopping for home loan products.


F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, Top 1% Long & Foster Agents, President’s Club 2008
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
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