HUD orders simpler forms for mortgages

November 13, 2008

Prospective home buyers would get a simpler way to understand often-confusing mortgage terms under new rules issued yesterday by the federal government. The Department of Housing and Urban Development overhauled a 1974 law requiring lenders to give a so-called "good-faith estimate" of mortgage costs, including lenders' payments to mortgage brokers. The government, which originally proposed revising these forms more than six years ago and released its latest proposal in March, says the new forms should save consumers about $700 in closing costs. The new forms will be required starting in 2010.

Associated Press