Nation's Building News Online

Builders Support Simplifying Home Buying Process

NAHB has voiced support for a HUD proposal to simplify the home buying process by modifying the Real Estate Settlement Procedures Act (RESPA). 

On Feb. 25, Gary Garczynski, immediate past president of NAHB, told a House subcommittee that the initiative could simplify the process of shopping for and closing on home mortgages, lower mortgage transaction costs and minimize unexpected changes at the time of loan settlement.
 
Garczynski noted that the proposed changes would advance the efforts of the Bush Administration and NAHB to expand homeownership opportunities among minorities.
 
“The complexity and cost of the home financing process have been major impediments to increasing minority homeownership rates, and HUD’s proposed regulatory changes would do much to increase access to mortgage financing,” he said.
 

Sponsored by: 2-10 Home Buyer's Warranty

Need to Buy General Liability Insurance?
Are You Controlling Your Exposure to Moisture, Mold and Fungus?
Do You Know How to Compete for Insurance Dollars and Coverage?
Insurance Coverage a Challenge?

Garczynski suggested additional changes to the HUD proposal that take into account the fact that the loan origination process for newly built homes can last four to nine months, or even longer.
 
For both the Good Faith Estimate and Guaranteed Mortgage Package components of the HUD rule proposal, he suggested an alternative method for providing final quotes and guarantees comparable to the timing of guarantees that would be made in financing an existing home purchase.
 
“For example, a lender would provide preliminary estimates at the time of the initial application and then issue final, guaranteed estimates 30 or 60 days prior to closing. This would give customers enough time to shop for a better loan if they believe they can find better terms than what’s in the final loan package. It would also give the lender a chance to make adjustments in the loan package during the time from the original application to closing, a period that often stretches over several months,” he said.
[ Go to Top ]

Sponsored by: Countrywide Home Loans

See how Countrywide®'s National Builder Division can help builders achieve higher turns.
Discover how qualified borrowers can boost their home-buying power with one of Countrywide's 140+ home loan products.