"table funding" (see the definition in §3500.2) is when the funds aren't yours. If you use your own funds, you are not table funding and you're not a broker.

Optional credit insurance IS a settlement service. You can find this in the definition - §3500.2 "Settlement Service" #12.


Not true. Appendix A says to list "each charge included in Blocks 3 and 7. Then it goes on to say "for each charge included in Blocks 4, 5 and 6 . . . I see no where instructing us to include things that weren't on the GFE to be included in the comparison charge.

New Question about tolerance cures:

I'm very confused about tolerance cures...in the example on page 33 of the most recently issued HUD FAQ, the HUD indicates on page 2 that the customer paid $800 of a $1000 transfer tax bill (apparently the GFE showed the estimate of $800, and there is zero tolerance). There is also a $200 entry as POC Lender.

Why wouldn't the HUD show $1000 for transfer taxes in the borrower column, with a $200 credit on page 1?

What would be an example of a situation in which the cure is on page 1 of the HUD rather than shown as a 'POC Lender' on the GFE?

These items may have been covered so I am sorry if I am repeating anything but,

1. is there any kind of waiting period (similar to TIL requirements) before closing once we re-issue a revised GFE? ie. does the borrower have to wait 3 days before they can close once we have re-issued a GFE?
2. do we disclose insurance on a refinance on the GFE?
3. do we have to redisclose a GFE on items where there is unlimited tolerance?

4. For purchases the seller picks the title co. We have no idea who it is going to be. Are we still in the 10% tolerance zone-it is not someone we identify so is this unlimited? Do we have to give them a list to shop from even though they aren't really shopping because it is the sellers choice, not the borrowers?
5. We do not require owners title policy, say at closing the borrowers atty reccomends the borrower get an owners title policy, since we picked the title co is that something we would then be required to be within 10% even though we do not require the policy?

Thanks!

1. is there any kind of waiting period (similar to TIL requirements) before closing once we re-issue a revised GFE? ie. does the borrower have to wait 3 days before they can close once we have re-issued a GFE?
2. do we disclose insurance on a refinance on the GFE?
3. do we have to redisclose a GFE on items where there is unlimited tolerance?
4. For purchases the seller picks the title co. We have no idea who it is going to be. Are we still in the 10% tolerance zone-it is not someone we identify so is this unlimited? Do we have to give them a list to shop from even though they aren't really shopping because it is the sellers choice, not the borrowers?
5. We do not require owners title policy, say at closing the borrowers atty reccomends the borrower get an owners title policy, since we picked the title co is that something we would then be required to be within 10% even though we do not require the policy?

Here's a link to a very good article on YSP vs SRP:

http://www.lenderscomplianceblog.com/2009/08/service-release-premium-versus-yield.html

4. If the seller PAYS the fee, it isn't listed on the GFE. If the borrower pays the fees, you must pick the provider or provide a list of recommended providers.
5. If you don't require it, it doesn't show up on on the GFE. Since it isn't on the GFE, there is no tolerance if the borrower still chooses to purchase it.

Wolters Kluwer has added signature lines to their forms but we just received a bulletin stating they are removing and replacing those forms.

Another question - In regards to the FAQ's under GFE Block 2 #4:

Q: The regulation states that while the borrower’s interest rate is locked, the credit or charge for the interest rate chosen and the adjusted origination charge may not increase from the amount shown on the GFE. On a “no-cost” loan that covers third-party costs where the rate has been locked, the GFE should show a credit for the interest rate chosen, in an amount sufficient to cover the estimated loan originator and third party fees. If the actual third party fees at closing are lower than stated on the GFE, may the loan originator
reduce the amount of the credit to match what is needed to pay the actual third party and loan originator fees?

A: No, the amount of the credit may not be reduced. The loan originator may choose to: 1) have the amount of the credit remain the same as stated on the GFE to cover additional closing costs previously not anticipated to be included in the “no-cost” loan; 2) apply a principal reduction to the principal balance; 3) reduce the interest rate and the credit accordingly; or 4) have the credit remain the same, resulting in cash to the borrower.

We do not lock rates so I am wondering if the same answer would apply for loans with rates that are NOT locked. Any guidance would be appreciated! Thanks!

Maybe we will get an 11th hour reprieve as with UIGEA. The Q&A's are not enough to get thru the final rules and understand how to properly address the "GFE", which IMHO is no longer an estimate at all. Mortgage lending is too diverse to simply cover with a one size fits all Q&A that can cover the entire range of circumstances that might be involved with a mortgage loan. We desparately need help here going forward. Wonder if HUD is listening? HELP!!

I would also appreciate a response to this question, PLEASE.

I emailed the question to HUD. "Judy" stated that you may not reduce the amount of the credit listed on the GFE even if you do not lock your rates. This FAQ would apply and you would have to follow one of the four options listed.

I would think that if you wanted to use a simple HUD 1-type form for non-RESPA loans, there would be nothing inherently wrong with using the soon-to-be "old" version.

David, how are you justifying these two answers, particularly when it comes to block 5? The Q&A on this block of the GFE seems very clear that no matter what, and no matter who pays for it, you have to disclose it on purchases.

Can someone direct me to finding an answer to the following: On construction/perms we may do several inspections throughout the construction phase. Sometimes the inspections are done by bank staff and sometime by an appraisers. We typically charged a fee per inspection - can we just increase our origination fee and eliminate the inspections fee?

Does anyone have any feedback on this one. I would truly appreciate it.