You may only have one provider, but they can go outside the bank to obtain their own, right? If so..I wouldn't consider it a required provider. If you do that, you turn it into a FC for APR purposes...most allow "choices".

Does anyone know if this conference call open to financial institutions that are not credit unions?

The NCUA regulates credit unions not the OTS. There does not seem to be a registration requirement for the call. The OTS provides a phone number and a participant passcode. I'm thinking anyone can listen to the call provided there are enough phone lines available for the call.

There's always other providers the borrower could choose. I agree it's still in the 900 series.

We don't require services like pest inspections or surveys. However, some borrowers request a survey if the property is found to be in a flood zone. Some want a pest inspection but that is a service the seller would usually pay. My point is, since we don't require these, where would we list them on the GFE?

Well, HUD denied the request to "stay" the deadline. Full speed ahead, ya'll!

I'd post it, but I have a PDF copy and haven't looked at their site for it.

And Brooks, you don't...you'll put them on the HUD somewhere in the 1300 section.

I have the same question...services that we don't require but usually the seller pays for, do we need to list on the GFE?

If we ahve a list of service providers, does it matter how many are on the list? Before we needed 5 but if we only have 2 it is okay and then if they don't pick them it is not considered a reqquired service?

On page 11 of the FAQs it says the settlement service providers list should contain providers that are likely available to provide the settlement service for the borrower. We have many branches spread out across the state. Should we compile a list specific to each branch? Could we compile a bank-wide list and seperate the providers by location? Do we have to retain a copy of the list in the loan file with the GFE?

There is no where to put services you don't require on the GFE...only the HUD seems to permit being able to include those charges in teh 1300 series (even though it say's "required services you can shop for)

HUD did not provide for any particular number of providers to be listed.

Having a list of providers and requiring the service are two different things. If you require it and you allow shopping, you HAVE to give a list of some number. If they don't pick from your list and use someone else, it removes that from your 10% tolerance limits. (this applies to blocks 4, 5, 6 of the GFE)

Yes, you need a market driven list (or at least include area service providers) according to HUD's opinions. Whether it's branch specific, or system-wide probably wouldn't matter. if they pick someone NOT on the list, I might want to include my list to prove it!

Would a minimum finance charge be considered a prepayment penalty?

I can't find anything on this. Can anyone help me find support for this? I'd like to show it to those here who believe the RESPA deadline will be postponed.

Nevermind, I just found it.

If you will pm you with an email address I'll send it to you...keep your fingers crossed it doesn't get caught up in our secure mail, but if it does, just go through the process to retieve it.

Didn't see your last sentence!

We (the bank) pays for the credit report(s), it is not charged to the customer.

So on the GFE the credit report fee would be shown in block 3.

On the HUD-1, per the FAQ page 29 Q#11, the credit report fee would be shown on line 805 with a corresponding credit on line 204-209, thereby eliminating the use of Hud 1A forms....

Have I got this right?


I've been messsing with this stuff alllll day. I've been in contact with a consumer compliance specialist at HUD and the info they're giving me directly contradicts what's in the FAQ...especially the parts about credit life....I'm going home.

Just saw a message from ABA - their request to HUD for a delay in RESPA effective date has been DENIED.

Full steam ahead!

I have briefly reviewed the OTS completed forms and found a few errors and notable items:

Good Faith Estimate – page 1:
Dates #1 has a time. You can do this “if necessary” it states in Appendix C. The only time I see this happening is the applicant is sitting at the desk with the Loan Officer and they want to make sure they understand these rates can change quickly. If you mail it to an applicant, the time seems like a moot issue.

Good Faith Estimate – page 2:
Block 3 has 2 services per line. I think this is because they are limited on the expansion of the form at this time. I believe software will expand this block as necessary.

Block 5 – The borrower is paying 100% of the Owner’s Title Insurance. This is not “typical” in our area. Just a note of interest.

Block 7 – The borrower is paying 50% of the Transfer Tax. This is typically a seller’s fee.

Good Faith Estimate – page 3:
Shopping Chart. This doesn’t have to be completed, but if it is, it should be accurate. This information indicates there is no prepayment penalty. The first page of the Good Faith Estimate says there is a penalty.

HUD-1 – Page 1:
Block H – should have a phone number.
206 – shows a credit to the borrower for transfer taxes. Therefore, the borrower didn’t pay any of this fee (see line 1203 too).

HUD-1 – Page 2:
Line 801. Origination charge was 6,750. Now it’s reduced to 6,250. They bank fees must have come in at $500 less.

Line 802 should be a negative number.

Line 1007 has 2 negatives.

Line 1202 has both a Deed and Mortgage fee. I would think it would be one or the other.

1300’s: 1031 is the sum of 1302 and 1303. 1304 (home warranty) is something not required by the lender and therefore, not listed on the Good Faith Estimate. This fee is also not listed in the tolerance boxes on page 3. Everything else is. This is correctly completed.

HUD -1 – Page 3:
I don’t see anything wrong here. It would have been nice if they would have shown an example of being out of tolerance and shown us how to cure it.
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Thanks RRjoker and David for your help.

David I look forward to your expertise on escrows in December when you make your way down South!

Does anyone have any idea on how we are going to calculate the deductible points to report on Form 1098 in box 2? The current instructions say that deductible points are an originaton fee or discount that is a percentage of the loan amount. However, the new form requires that we put our processing fees in with the origination fee and does not have a spot to state the percentage. So does this mean the borrower can no longer deduct origination fees?

David, did you also notice that the release fee (1202 on the HUD) is carried straight over, instead of moving up to 1201? Our WK forms black out that column and I believe it should be in 1201.

I also am not seeing two negatives in 1007...can you explain that further? I'm not sure why it's the same amount as one month's taxes unless that's a coincidence?

Just an observation: In the Q&A they show an example of how to show a tolerance. correction. Page 27

See the Q&A 10-7-09 page 33

Speaking of originations fees...for in-house loans where you charge a loan fee, but it's a set amount and not a percentage...should that be considered an "origination fee", or not...I'm wondering about 1098 reporting of that fee based on how you "define" it?

I didn't see that. Good point.

m already has a negative to the left of the $ sign. They they entered the "166.67" with a "-" in front of it.

Without knowing when the escrow items are paid, I can't calculate the adjustment. I assume it's just a coincidence.


But they show a $0 tolerance item (transfer taxes). I'm still confused on how to show a cure for items for the 10% tolerance items. You don't own them 100% of the increase. Also, what if 3 fees are over and 2 are under but you are 11% over tolerance. How do you allocate the cure to one item like they show in the Q&A's? Do we need to pro-rate the cure? Do you assign it to one fee? Lots of questions on this.

I see what you mean. I'm wondering if you rebate down to a total of 10%...that would make logical sense...HA..did I just say "logical" regarding anything HUD?

(oh...and now I see the two minus signs...I was looking for double figures!

Well let me retract my observation regarding line 1202...the Q&A 10-22-09 line 1200 Q#5 shows it in the 1202 if paid by the seller. That's weird..borrower's charge moves us to 1201, but seller goes across on 1202.

Geesh!

I have a question regarding the definition of "changed circumstances". In the definitions section "changed circumstances" is said to include "information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided. This may include information about: (and i'm inserting here just the ones i'm interested in) the amount of the loan......the estimated value of the property". Then it goes on to say that changed circumstances DO NOT include ".......an estimate of the value of the property (or) the mortgage loan amount sought........"....What am i missing here? That seems very contradictory to me.