Borrowers Receive Between 2-3 Good Faith Estimates Per Transaction According to ALTA Survey
April 23, 2012
The estimates received by consumers at the beginning of their real estate transactions are getting more accurate, according to a survey of over 200 title professionals by ALTA. The survey was designed to guide ALTA’s advocacy on the new RESPA rules being written by the consumer agency. We send the results to the Consumer Financial Protection Bureau so they are better informed as they prepare the new combined HUD-1 and TIL form.
In the survey, 72% of respondents felt the estimates in the initial GFE were either accurate or highly accurate. However despite this increased accuracy, 75% of consumers still receive multiple Good Faith Estimates in the transaction. ALTA has suggested that the concept of tolerances introduced in the 2010 RESPA rule is not working and should be replaced.
ALTA continues to work with the CFPB as it prepares to publish a HUD-1 in July. For more information on this topic, please contact ALTA's Legislative and Regulatory Counsel Steve Gottheim (firstname.lastname@example.org).