**Leon Kramer, Mortgage Broker**

# 1423 Tanglewood Drive East 

**Hideaway TX 75771-5133**

**Thursday, April 24, 2008**

**Office of the Assistant Secretary for Housing**

**Re: Docket No FR 5180-P-01, RESPA**

**Comments about RESPA proposal and revised GFE**

**Page 1**

**Can interest rate rise, what about defaults?**

**Suggest, Other than if I default on the loan, can my interest rate
rise or fall?**

**Same thing for can the balance rise, change wording.**

**Concern is that a defaulted borrower could use this as defense on
default or if taxes, insurance, etc. are added to note balance as
provided by deed of trust.**

**Rates change hourly. The "important dates" sections is not needed,
instead consider**

**This good faith was prepared assuming a \_\_\_\_ day lock in period
and assuming a credit score of \_\_\_\_\_\_\_\_\_. Rates will change
until you confirm a lock in; these rates were in effect on
\_\_\_/\_\_\_/\_\_\_\_.**

**A + B section unneeded, redundant**

**Page 2**

**Very confusing. I have tried this as an experiment with clients over
the last month. It made no sense to them. They wanted to know what is
the rate, what are the charges that I can control, and what are the
estimated other amount of funds needed at closing. Basically, what of
the Section 800 charges can I guarantee to not be higher than (x)
amount?**

**Replace this with a "preliminary settlement statement" in exact format
as final settlement statement. In 800 section, add language to the
effect that "we guarantee that the charges that we can control will
never exceed these amounts at closing. You will be given a copy of the
final settlement statement and note at least 24 hours prior to your
scheduled closing."**

**Require the 24 hour advance in all transactions. No last minute
surprises at closing with high pressure situation.**

**This way, if borrower has been "quoted one thing and delivered
another", can refuse to close. No close, no income. Imagine the pressure
on non-compliance originator from the Realtor, title agents, surveyors,
appraisers, etc. etc. who do not get paid because the originator lied to
their clients. Forces the industry to police itself.**

**Page 3**

**Eliminate top half, of no use.**

**"Looking at trade-offs" section is good, this prevents us from having
to prepare three different preliminary settlement statements.**

**Page 4**

**Eliminate, this information will be provided by other third party
providers, and borrowers will not complete the shopping chart. There are
a lot of reasons a borrower does a loan with a particular originator,
rates are only one of these.**

**I think the overall goal to improve disclosure and assure borrowers
that what they were quoted is what they get is good for the industry.**

**As a practical matter, I would always quote that the Section 800 items
will never INCREASE and always quote the maximum allowable, that way I
would always be in compliance. But I would also quote an actual
preliminary settlement statement for actual comparisons.**

**As long the client knows the maximum I can make, and the 800 section
and rates are as confirmed, then I should be able to make as much
compensation as possible. If I take the risk, I should get the reward.**

**Scrap the proposed form and propose something practical.**

**Sincerely,**

**Leon H. Kramer, CPA**

**Mortgage Broker #402**