I have received 2 different answers from auditors on this so I thought I would seek an opinion here. Borrower selects higher rate to obtain $1000 credit to cover closing costs. Does that have to be disclosed on the GFE or can it be disclosed only in Section 200 of HUD? Thanks for your assistance!

If I understand your question.....this would be a changed circumstance affecting the origination charge...issue a new GFE.

Anyone else?

When customer selects the rate, they selected a higher rate that includes a lender credit of $1000. Does that $1000 credit have to be disclosed in Section 2 of the GFE - You receive a credit... or can it only be disclosed in Section 200 of the HUD-1? Thanks!

Is there an echo in here

Since it does not involve an increase is fees, a revised GFE is technically not triggered.

It can be done either way.
A number of us go with issuing the GFE without the credit and just giving it on the HUD.
The logic behind that choice is that if something happens that would lower the credit amount, if you've put it on the GFE you're stuck with giving the entire amount you showed originally.

Thanks, Randy. But doesn't it have to be disclosed in Section 800 as well?....to be carried over to the tolerance chart? Or do I simply not understand the scenario?....(can be highly likely)

Yes, it would show in the 800 series, but it still would not trigger a tolerance issue.

In the new world, it would just be a non-specific lender credit.

OK....thanks, Randy. I get it.

Thanks everyone for your assistance!