Although in theory having consistent guidelines that everyone needs to conform to is very desirable, the execution of this seems to me to be off.
The toughest part of it for me has been that costs on the new GFE are a "worst case scenario" as opposed to what the costs will actually be at closing. There are some items which are normally paid for by the seller here in Michigan, such as transfer tax and owners title insurance, that have to go on the GFE.
It takes a lot of effort to explain this to the borrower and not make it sound like you're trying to pull a fast one on them :) It makes it even more important to work together with their realtor to make sure our customer understands. It also makes it imperative that we touch base with the title company early in the process to have them provide the borrower with ACTUAL costs.
I think this creates more work for ethical lenders who've always disclosed things properly anyway. It's just a shame that we're forced to work more to make up for those shady lenders who've relied on the old bait and switch.
Just my two cents...I'm interested in seeing what others have to say
I'm sure we'll figure it out, but for now this is causing a mess. Hopefully it's just a minor speed bump as opposed to a big pothole (for those who've driven on Michigan roads LOL)
Page 1 of the GFE also has its plusses and minusses, but you can clearly let someone know that the rate quote will not last. The question about interest rate rising is OK, if they only explained what they were really talking about. Clearly no professional really put this together.