It’s clear that many people who took out loans in the real estate boom didn’t really understand them. Today, the Department of Housing and Urban Development proposed the use of a new standardized form to help people know what they’re buying when they're shopping for a home loan. HUD estimates this will save consumers on average about $700.
This is the second time HUD has proposed changes. Last time, opposition by the industry kept reforms from taking place. There’s certain to be opposition to this form too, but given the current situation in the housing market, regulators should be more determined to get it done.
You can review HUD's press release about the new "Good Faith Estimate" form here: HUD PROPOSES MORTGAGE REFORM TO HELP CONSUMERS BETTER UNDERSTAND THEIR LOAN, SHOP FOR LOWER COSTS.
Do you think this form will help people understand their mortgages?
