Tulsa Mortgage : Podcast 162
Tulsa Mortgage This is Steve Currington dot com on the Steven Tyler show episode number 162.
Steven Tyler with Steve Kering comment. Tyler why. Negotiate. Very. Smart. Good for you.
They’re talking about everything you need to know about mortgages. Nobody knows what like these to get ready. Here’s Steve.
Ya-Ya. What up. Thaila up today we’re talking about what’s a good faith estimate. That blows your mind doesn’t it. You’re not so sure what’s a good faith estimate.
What is a good faith center. It’s an estimate made in good faith.
Tulsa Mortgage That’s good. Hey if you’re watching on total ending you or you listening on the podcast and you know anything about the mortgage industry or home financing or any that you’re like there is no good faith estimate. So why are they talking about good faith. Because everybody still calls it that. True. Totally. Really. Can I get all can I get a good faith estimate. No you can’t.
Why. Well because they don’t exist anymore. It’s called a loan estimate now.
Because the realtors is so in their hood. Yeah can I get the hood. Did you guys finish the hut. The hut one. Well no we’re never going to finish the idea because it doesn’t exist. I did. I finished. I had one. That one I did last one. Five years. Yeah we did that a while back.
Tulsa Mortgage So here’s what a good faith estimate is. It is an estimate that is made in good faith as Tyler explained so eloquently but they don’t exist anymore. So. One might ask why are you talking about a good faith estimate if it doesn’t exist anymore. Because customers are still talking about it because clients are still talking about it. This might date us but it’s just it’s been called a good faith estimate for like 30 years. I mean since before Tyler was born it’s been called a good faith estimate. You might say really that old guy since before he was one. Yeah. You’re watching this it’s like 2027 intolerance already like 50 or something and he’s actually gained weight now even though he claims he’ll never gain weight now. So it’s by the way this is a little off topic but Tiger thinks he’s never going to gain weight. So. If you’re watching this I want you to go find Tyler right now and then show him this video and then say. Gotcha.
Because one day one day Tyler.
I have good faith. I estimate that you will in fact.
Pack on the pounds. Maybe if I like just randomly grow an extra limb or something that will add weight in Tyler.
Tyler’s in this fantasy world really thinks he’s going to stay the same way their whole life so a good faith estimate is what we’re talking about guys. And here’s the deal. If you wanted to know what the proposed interest rate was on your low. You might be able to find this on a good faith. What other information would you find on a good faith estimate or monthly payment.
Tulsa Mortgage Or your monthly payment would be on the now.
Tax insurance. The APR was on on the day yet your annual percentage rate. It’s been a long time. So. If you had an underwriting fee.
That would be on the closing fees in general. Third party title is that they that type of thing that would all be on their right. What else. Prepaid have your escrow is your taxes insurance for sure insurance. Building escrow account.
Tulsa Mortgage If you had inspections that were required by the lender they’d be listed there. Who they are who they go to those are the third party fees. Hey your name goes on there.
The property address if you have a property picked out. The name of the lender. The name of the originator. The name of the mortgage company. I say that are. Kind of the date. The date that the interest rates good for. Like how many days. Lot of. Really nit picky type info. You know. Like a.
Lot of stuff. In fact when I was in the business. And
I don’t know it was like 2010 11 12 when they changed the good faith system. It used to be one page. Your trusty government you can think the Dodd-Frank Act in the sea of P.B..
They came in and said Oh my gosh Tyler this good faith estimate is just way too confusing for consumers. So let’s create a new one. That’s even more confusing is longer and makes less sense. So they created a good faith estimate a new one. This one became a three a three page document that virtually said. A lot of the same stuff that the one page Good Faith Estimate said. Except in a more confusing way that was harder for consumers to understand.
Tulsa Mortgage When that happened.
Us Us lenders are smart people you know. We kept using. In our system we had to. Call Today.
What do we call it estimated fees worksheet or fees worksheet. If were shown in the field work sheet. Was exactly like the pre 2010 good faith test. It Like It looked exactly like. So we would give someone a good faith estimate because we have to by law we’d have to give a good faith estimate in truth and lending lots of red to. But then we would say Now you can review that. I suggest that you review it. It’s a great document to review.
But if you want to make sense like here’s this one. It’s on one page it breaks everything down.
It makes more sense this is what humans are able to pay it. You know you can figure this out and people would then understand it. So then you know. Now we had a new good faith estimate that was now three pages long and more confusing. And then what did every lender do every lender in the nation. What did they do to. Compile all. Yeah. They complain because they suck but they all created a whole new document that went in the loan package that was called a fee worksheet or something to that. They called it something different depending on the loan the loan origination system that you used. They called it an estimated fee worksheet they call it a fee worksheet they call it a hundred different things but it basically replace if you can imagine this it replace the good faith system. It didn’t really replace it. It was like in addition to Senao your your document package terrific. That was 57 pages became like 60 pages because you had a whole new page that was a fee worksheet which was the old testament. Then you had the three page Good Faith Estimate that no one looked at. Right. Because it was confusing and they don’t understand it. And then and then you had. This really nice like break down the Erlinder provided you that was like the old good faith system.
Tulsa Mortgage Right. So because that’s happened for so long it’s why I wanted to bring up put a good faith estimate is that we’re going to talk in our in another podcast about what a loan estimate is. So tune in for that. Because that’s what happened. So they the government came in again and they said oh my gosh what we did back in 2010 that’s too confusing for the consumer. Let’s make it even more confusing. Absolutely. Document Now I will say. That now that we have a loan estimate and a closing disclosure not a good faith estimate and a hard one. They are more uniform because the loan estimate essentially becomes the closing schools. Now in the same document it’s exactly the same document at closing. It’s called a closing disclosure. And prior to closing its Colona estimate because it is an estimate and the closing disclosure is like the final. Right. So we’ll talk about what a loan estimate is and what a closing disclosure is in a future podcast.
But a lot of people still call that a good faith answer. And I think that’s what’s important. So if you’re talking to your realtor if you are a realtor. We don’t really care as loan officer people because we know what a low a good faith estimate is and we know what you’re talking about. But.
If you want to be like you know in the 21st century. Are we in the 21st century.
It’s like if you want to be like up on things you might want to figure out what it is because nobody calls that good faith anymore. No lender calls it good faith anymore it just doesn’t happen.
Or you wake up. Tyler yawned. Hey everybody in podcast land. That means Tyler. Are you awake. Wake up.
I haven’t been able to use that in months and months and months and months. So. So so so Tyler.
Tulsa Mortgage What does. That really be terrible actually. You’re asking why can you not say that. They’d have no one. Unless they bought a house or they got a mortgage for sure. They might. Question or know what they. Did.
But you. Will show your if you’re in the shell to say this if you’re a realtor this listening or you’re a loan officer and you want to show other people your ignorance then keep calling it a good faith. And don’t mean that to be rude but you know ignorant means like you don’t know. You know it’s like you’re unconsciously in content you just don’t know. And so if you continue to call it a good faith estimate then people are going to know that you kind of don’t know what you’re talking. So it you know I don’t know it be like a doctor still referring to medical terms that were from the 80s that don’t exist anymore now. So why would they do that. Because like they’re old and they haven’t like gone like read medical journals and gotten like continuing education. You know I mean that would to me. Wouldn’t that be right. That would be like the only reason you would be talking about medical stuff from the 80s.
Got a lady yesterday that that used to work in the mortgage business and these. Wow.
I mean how is it different that they have things called savings and loans companies back then they called it Savings and Loan. That’s what it was called. So if you’re still talking about the good faith estimate. You’re not up on the newest coolest stuff so just remember that that it’s not called a good faith estimate anymore.
Tulsa Mortgage Broadcasting live from the koala’s studios in Tulsa Oklahoma. You’re listening to the Steven Tyler show