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Closing The Faucet: Some Good-Faith Estimates

In Kenneth R. Harney’s article A Good-Faith Effort To Clean Up Estimates [Washington Post] [1] finally there is some good news on some costs associated with housing.

“It’s a distressingly familiar scenario for home buyers and refinancers, and it was one of the major mortgage-related consumer complaints to federal agencies in 2005: “good-faith estimates” of settlement costs that turn out to be hundreds, even thousands, of dollars off the mark.”

Federal housing officials are working on possible remedies, but here’s some unexpected good news: Mortgage lenders are, too. Growing numbers of them have gotten the message from their customers — we demand certainty about fees — and they are debuting new ways to turn their estimates into binding promises.

Harney mentions a few lenders that are seeing the importance of fixing the closing costs. Its sounds like a good idea. Lets hope its contagious.