Brighten Lending knows that consumers are accustomed to receiving a good faith estimate in order to anticipate all of the costs they can expect to incur in connection with a purchase or refinance. Effective January 1, 2010, however, federal law prohibits lenders from providing any consumer with a good faith estimate until receipt of a completed application that complies with federal standards, as well as the lender's standards. A completed application must include: (1) the borrower's name; (2) the borrower's monthly income; (3) the borrower's social security number to obtain a credit report, as well as the social security number for any co-borrower; (4) the property address; (5) an estimate of the value of the property; (6) the loan amount; and (7) a fully executed purchase contract that includes the closing agent and title company contact information. We understand that consumers may find this new law frustrating and onerous, and we have taken the time to spell out the requirements in order to manage consumer expectations and explain one of several ways that the mortgage process has changed in recent years. BEWARE. If you receive a form that is not entitled "good faith estimate," but contains estimated third-party fees in advance of submitting a completed application, you cannot rely on the accuracy of such a document. Many lenders are attempting to circumvent the new regulations by providing consumers with "worksheets" that purport to estimate third-party fees. We believe this practice not only is illegal, but also potentially exposes consumers to low-balling of third-party fees that the new law was designed to curtail.
Notwithstanding the newly enacted hurdles to obtaining a good faith estimate, there are certain lender fees identified daily on Brighten Lending's rate sheet that consumers can use to compare at least some of the costs they can expect to incur in connection with their mortgage. Some lenders and brokers may have their fees broken out into categories. Others, like Brighten Lending, have a single fee category called administration fee. Consumers should be able to compare the costs that lenders (as opposed to third parties) charge, and we encourage you to do so.
We have provided the following table identifying the categories of lender fees that consumers may be charged in connection with a refinance or purchase. These fees are exclusive of third-party fees that can only be estimated at the time a consumer becomes eligible to receive a good faith estimate. Brighten Lending encourages you to use this worksheet to compare Brighten Lending's fee to the fees that our competitors may quote you in order to assist you in making an informed decision about the cost of financing. Again, please note that these fees do not include those that third parties may charge, which would include title insurance, appraisal costs, settlement/attorney, county fees, pro-rated interest, taxes and homeowners insurance, etc. A good faith estimate that includes these estimated fees will be provided once you become eligible pursuant to the new law.
* Brighten Lending’s typical lender fee is $989, but may vary for specific quotes on any given day.