The department of Housing and Urban Development has offered a new Good Faith Estimate form. This is a good thing. The new form makes disclosure to borrowers in simpler terms, avoiding a great deal of jargon. The Inman News blog offers a look at this latest mortgage form:

The form discloses basic loan terms in plain English that’s free from
unnecessary jargon. Six of the most important disclosures are stated on
the first page in simple yes-or-no questions that aren’t likely to be
overlooked or misunderstood. A separate section outlines the costs of
the loan along with helpful descriptions that explain the purpose of
each cost, and again, are written in plain language.

Of course, the new Good Faith Estimate form isn’t perfect. And while it does limit some cost increases, the loan comparison section is lacking. Lenderama points out that the new Good Faith Estimate form also does not address kickbacks with any clarity.

And, obviously, there is no way to force compliance on unscrupulous lenders, or make up for mortgage lender (or borrower) incompetence. But the new HUD Good Faith Estimate form is a step in the right direction.