The Good Faith Estimate, or GFE as most in the business call it, was originally designed to give borrowers an idea of how much it would cost to close their loans; both in purchasing and in refinancing. At that time, "Estimate" was a good name for it because no one was held to the numbers in it when closing the loan. In fact, many bankers and mortgage brokers deliberately misled people about the costs of closing the loan. Borrowers were confronted with all kinds of costs at closing about which they were completely uninformed. Old story, mortgage crisis, end of that practice.
Now the Good Faith Estimate is binding. There is little chance of being surprised at closing. The real name should be "Closing Costs." Period. End of story. The banks compare the GFE to the actual costs and will not allow new fees.
Much of the anxiety that previously enveloped closings is now not a factor. A sigh of relief all around.
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