The FAQ's indicate that if the loan originator gives a GFE then the loan originator is presumed to have received all 6 pieces of information for an application according to RESPA, noted in Question 23 under GFE-General. Also, FAQ, Question 8ii under Changed Circumstance indicates that if a GFE is issued without a property address the subsequent identification of a property address is not a changed circumstance. I would think that unless something else changed like the loan amount or interest rate you would not be able to issue a new GFE.

I have been struggling with the pre-approval also when you don't have a property address. I was wondering if you should not issue the GFE until you have a property? Does anyone have any insight on this? The only negative I can see is if you have to deny the pre-approval. It then becomes HMDA reportable and you would need an application date. Any thoughts would be appreciated.

From HUD:

Property taxes are only on the New GFE if escrowing.

Okay...another question....since this is bank paid closing costs, we are paying the recording fees and the doc stamps and intangible taxes. When I try to do this in BYTE, it says that POC recording fees and POC transfer taxes (which is where we list doc stamps and intangible taxes) are not supported on te HUD1.

Do I list them as charges, then give a credit for them in Box 2?

The escrow waiver fee doesn't go into Block 1? I don't understand how it goes in Block 2.

I agree with you raitchjay...

Yes. It is handled the same as items for no cost loans where you show the costs and then show the credit in Block 2 for the fees the bank is not charging the customer for.

If the borrower pays for the HOI - how are you able to list it as a credit in Box 2? I hadn't heard of this. If you are requiring them to have HOI - it needs to be disclosed on the GFE. Are other people handling this with a credit in Block 2? Again - I hadn't heard of that.

My contact at HUD told me that if the seller "typically pays" the fees in the market in question, then no - they are not on the GFE. We have various states we are working with, and we are only disclosing the fees that are "typically" paid by the borrower.

Always, did HUD tell you whether that changes for purchases vs refis? If the borrower would typically pay the charges on a refi but on a purchase the seller does, would they show on the refi GFE but not on the purchase GFE? I think this is throwing me because of the owner's title HAVING to be on the borrower's side, period.

Just when I think I have this down........

This may have been answered several hundred pages back, but - How are you going to treat applications where GFEs were issued but not accepted on HMDA? If we deny them up front without issuing a GFE, then its reported as a denial.(I think) If the loan is originated, then of course it's reported as an originated loan or if it's denied based on a changed circumstance.

Depending on the circumstances with each, either withdrawn or incomplete.

I think I have a new issue. We are testing ARMs on our LOS and we have come up with a question.

For TILA purposes, the APR and payment stream are based on the current index - it is assumed that it will not change over the life of the loan.

On the new GFE, with regards to "even if you make your payments on time, can your monthly amount...rise? (Page 1). Our LOS is displaying the "TILA" first payment amount. My question is, should it be the payment as if the interest rate had hit the initial cap?

In english, assuming a one year arm with an initial rate of 4.875%, and a cmt of 0.47 - should my payment amount be based on 3% (the first adjustment rate assuming a static cmt) or 6.875% assuming I hit the initial 2% cap?

Thanks

We are going with "typical" on everything but transfer taxes if not state-specifically required by seller, and of course, owner's title insurance on purchases.

If the loan is a refi, any applicable fees would have to be paid by the borrower, because there isn't a seller. Therefore, "typical" wouldn't enter the picture.

I know that HOA dues have been discussed but I can't locate it in this thread.

Where should we disclose the HOA dues on the GFE?

Also, in some states there are a HOA transfer fee. Any ideas on where to disclose that?

Try here

I searched "lock" and recieved no responses so sorry if these have been asked already.

#1) Applicant comes in-fills out application, we verbally go over what closing costs are going to be, we explain the lock-in fee-which is optional for the applicant. Applicant decides s/he wants to submit application, accepts the fees we have verbally provided and expresses an intent to proceed based on what we've verbally expressed. We issue a GFE, which is hand delivered to the customer at that time. The question: Does there need to be an initial GFE that does not disclose the lock-in fee and then one with the lock fee, to prove we issued one without charging the fee before providing the initial GFE?

#2) Can we choose to disclose only our affiliate as the only title company on the provider list if we do not have the affiliated business arrangement signed at the time the GFE is issued. The thought process being . . .if the customer has not signed the AfBA when the GFE is issued, can we still claim that we reasonablly expected to use the them for the closing?

Thank you.

This question has been asked multiple times at trainings, sent to HUD, the FRB and no one is in agreement.

Our vendor has told us, they cannot calculate this if it is not based on the TIL payment stream.

biz:
1)As long as you don't collect any fees prior to handing the GFE to the borrower and getting them to express their intent to proceed, there's no reason you can't include the lock in fee on the ONLY GFE you give them. The GFE is the worst case scenario for the borrower of the costs they're going to have to pay to get the loan therefore, the lock fee should be included.

2) As I understand it, you can put just your affiliate on the provider list as long as you give the aba to the borrower too.

Sorry in response to respa queen and the ARM situation.

Thanks Royale-another related question.
If we have included the lock fee in our charges/disclosure, because they had expressed an interest in paying one today when they were in, but won't pay it until payday, so the original GFE is sent out with stating the rate is only good through today, would it be necessary to reissue the GFE and change date #1 to for example-30 days down the road.

Meaning-if the only thing that is changing is the lock date (ID#1) would a reissue be necessary? The date originally disclosed would be the worse case scenerio.

I haven't had much luck with the search recently, so at the risk of getting lost in the shuffle... Our loan system kept the old GFE and has renamed it "Initial Fees Worksheet." The Loan Manager wants to continue to give this form to the borrower since it will give them a true idea of the closing costs and monthly payment. I've tried getting the Manager to use a separate form with the same info., but then they have to upload the form into the system and do some programming to create new entry fields. I'm thinking giving out the renamed old GFE is asking for trouble, but can't find anything that specifically prevents it. Any thoughts?

CB- If all government reference is removed, if the words GFE are removed, if there is a statement that indicates this is not a GFE, isn't it a now a separate form?

I have in my notes from HUD's RESPA Plain English that it's ok to issue something with the actual fees, but it can not look like a GFE. I would not use the old GFE (in fact, that may have been the specific question that was asked and she said no).

I remember that too, or a discussion on it. I would do a spreadsheet-type fee sheet or something of that nature instead.