WASHTINGON - Home buyers can soon expect a new and simpler way of understanding often confusing mortgage terms as the paperwork is changed nationwide.
The Department of Housing and Urban Development is simplifying those long and complicated Mortgage Settlement forms and "Good Faith Estimate" forms to only 3 pages starting 2010.
HUD officials along with the federal government agreed mortgage forms are too difficult for the consumer to understand, which has contributed to the many foreclosures.
This change will be uniform, meaning every state will have the same form to sign, no matter if you're dealing with a bank, a credit union, mortgage brokers, real estate agents or a title company.
"Bottom line is this is a uniform good faith estimate that is to be used throughout the country. So whether you're getting a mortgage estimate in Alaska, Hawaii, California or Washington, all the forms are exactly the same," said Craig Goebbel with the Washington Association of Mortgage Professionals in Seattle.
Settlement agents and the real estate industry are complaining about the change saying it would be costly and to complicated.