Hearing Focuses on Simplification of Florida Home Loan Process

Applying for a Florida home loan? We aim to make it as easy as possible, but let’s face it: this isn’t the most straightforward process on earth.

The National Association of Mortgage Brokers (NAMB) is hoping to change that. During a hearing conducted by the Federal Reserve bank in Atlanta this week, the organization focused on creating a simpler mortgage process with clear disclosure of all fees.

Kate Crawford, Chair of NAMB’s Consumer Protection and Affordable Housing Committee, stated that one of the toughest hurdles in the home buying process is shopping for the right Florida home mortgage loan.

“Unfortunately, the approved disclosure documents for rate, fees, costs and points can be confusing and overburdened with legalese,” said Crawford. “In addition, only mortgage brokers disclose all costs to the consumer. Until there is a uniform way to disclose costs and everyone is fully transparent about their fees it will continue to be difficult for consumers to comparison shop in a meaningful way.”

Crawford mentioned producing a Good Faith estimate that mirrors the HUD-1 closing statement that most homebuyers see when they complete the Florida home loan process, as an example of a measure that needs to be taken. By aligning these documents, customers would be able to ensure that the deal they signed up for is the same deal they see during closing.

She also addressed the importance of financial literacy education and cracking down on fraudulent lenders. In the short-term, Crawford said that requiring all Florida home loan originators to complete criminal background checks would ensure that bad actors are unable to move freely from one distribution channel to another.

We echo all of these statements/goals and more. Selecting the proper Florida home loans for you and your family, while having a chance to easily compare options, is the most important aspect of this process.