Recent guidelines impacting loan originators disclosure of closing costs have been set up by HUD in order to bring all lenders up to the same standard of excellence in reporting closing costs to consumers. The estimates provided by loan originators must be realistic fees that a buyer should expect to pay at closing with no last minute surprises.

Some of the important facts you should be aware of as a homebuyer are:  

* All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.

* In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower´s ease of comparison to other loan programs.

* Estimates for fees from government recording charges and third party settlement providers we suggest are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference.

* Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner´s insurance, and initial deposits for an escrow account.

Please be sure to make note of these items when you´re looking for a mortgage lender.

On another note, here is the latest article in Newsday´s Sunday, January 17th paper online about foreclosures on Long Island.