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The proposed changes are designed to for a number of things:

• Easier to compare mortgage offers while shopping
• Force lenders to estimate closing costs more accurately
• Ensure borrowers know the terms they are getting

The Good Faith Estimate would be summarized in two parts:

• Costs charged directly by the lender
• Costs imposed by third parties

Once the rate is locked, the lender would not be allowed to increase its service charge "absent unforeseeable circumstances". All third-party charges combined would not be allowed to rise more than 10 percent from the good-faith-estimate.

Another change would be the closing script from HUD which would be read aloud in HUD's words, compare the loan terms and settlement charges estimated on the GFE with those on the HUD-1 and describe the detail.

The proposed changes omits other key information such as loan-to-value and debt ratio as well as less emphasizes on payment shocks for ARM.