GFE and HUD
Question: Does the Good Faith Estimate have to match the HUD-1? We have been told by someone that if the GFE is more than $100 different from the HUD-1, it is a violation. I can't find the authority for this.
Answer: You can't find a regulatory reference because there isn't one. There is no tolerance requirement for the GFE. RESPA requires that the GFE be prepared in good faith, that the disclosures be reasonable and include information known at the time it is prepared. If the numbers change after the GFE is prepared, the change is not a violation. There is no "tolerance" for the GFE. However, keep watching HUD on this because HUD would like there to be a tolerance. HUD may re-propose a new approach for the GFE and it could include tolerances.
Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 10, 10/04
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