Taxes are not a settlement service, so they are not listed on the GFE.

No. How the fees are paid is not a factor for the GFE, so a revised GFE shouldn't be issued. Just list the fees on the Settlement Statement as POC. They still must be listed in the tolerance tables.

Thanks for the clarification

I have read conflicting information and need clarification. Is the escrow requirement for first-lien loans with an "application date of April 1, 2010 or later" or is the requirement for first-lien loans with a "closing date of April 1, 2010 or later"???

It's applications received on or after April 1, 2010 (date for manufactured homes is October 1, 2010). And this is not a RESPA change. This is a Regulation Z change.

On a refinance, if we are not ordering new documents, we must list the price and then give a credit in block 2? We are not getting a new title opinion but relying on teh exisitng one. When the loas was first done they consumer paide $295 for title opionion. So on the new loan, we disclose $295 for the title opionion and hten give a credit of $295 in block 2 on the GFE?

Thanks for the clarification Amos. That is what I thought it was also.

Yes, I do know it is a Reg. Z change and not a RESPA change, but it was amoung these postings were the conflicting information was that I was referring to and why I put the posting here.

Thanks again.

Conflicting training...does the title insurance premium have to be broken into agent and underwriter portions in the 1100 section on the new HUD-1? Lots of title companies just quote a single premium. Thanks for your help.

Another changed circumstance question: 3500.7(f)(2) discusses changes affecting loan terms. If the loan amount decreases, but charges do not change, do you reissue the GFE? The language is the same as for increased costs - "may reissue" - and since terms are repeated on the HUD, the question has come up. Do the terms on the GFE and the HUD need to match???

If the loan amount decreases we would have fees that would change such as the origination fee and title insurance premium (on a refinance), so we would issue a new GFE.
Are you charging a flat origination charge for all your loans, is that why your fees would not change? We have heard that some lenders in our area are going to a flat fee so I am curious how this would work, would a borrower applying for a 50K loan have the same origination fee as a borrower applying for a 500K loan?

JJR - if the origination charge is truly reflecting the cost to originate a loan, are the lender's costs different for a 50K loan versus a 500K loan?

We charge a flat fee with the only variables being loans with a subordination being higher.

You must list the agent's/underwriter's portion, but it could be combined. See FAQ #9 & 22 in the "HUD-1 1100" section.

First, I have seen conflicting emails from HUD on this. My read of the regulation is you must list all settlement services even if you're relying on previous services (appraisal, credit report, flood determination, etc.). I'd love to see HUD issue a FAQ that says we don't have to.

If you're listing a previously paid for service, you DON'T list a credit in Block 2. Block 2 is used to list credits for fees the LENDER is paying for. You're not paying for these services again, you're only saying they are required. On the HUD-1/1A, you'll list these fees as "POC (Borrower)" to the left of the borrower's column, indicating they have already paid for these services (with the prior loan).

but, on the HUD, if you are requiring them to be paid, you can put them in the 900 section.

David, this is not how we are handling an interest only loan. We show the maximum draw interest in the payment section. (If you don't, your balloon will be very incorrect). We would handle a "all due at maturity" loan in the manner you have described.

Taxes are NOT a settlement service, so they should NOT be listed in Section L (including the 900s). They would be listed in the 100s (first page of the HUD-1). If you read the instructions for 104/105, they appear to go there.

Well, I'd say that could depend. If this is a sale, and previously paid taxes are being prorated, then the 100 section is the proper placement. BUT, if they are delinquent or due taxes and the lender is requiring them to be paid, I would still consider that a 900 item.

when I answered above, I was thinking about this as "due/pastdue" and didn't take into consideration it could be a pro-rated situation.

David, do you still disagree?

I do disagree. Prorated taxes are a CREDIT to the borrower (500/200). Delinquent taxes or taxes due before the first payment are a CHARGE to the borrower. They go in the 100s. Taxes are NOT a settlement service - it's not in the RESPA definition.

On our new construction loans and major home improvement loans, we have an appraisal done by a third party appraiser to determine value. After the loan is closed and the construction is fully completed, we will send the appraiser back out to the property to confirm that the work was performed and that the value is still valid. We refer to this as an appraisal recertification. We charge the borrower for both the initial appraisal and for the appraisal recertification. With the new RESPA changes, should the cost for the appraisal recertification by listed on the GFE in Block 1 or Block 3? We were thinking that because the appraisal recertification is performed AFTER the loan closing that it should be in Block 1; however, it is performed by the appraiser and maybe it should be in Block 3. Which Block should it really go in?

I posed my question early to HUD about re-using settlement services. Here is my response I got from HUD:

If you do not require a service (using a previous appraisal etc) it is not required to disclose it on the GFE.

We've always done the same as RR Joker. Taxes in the Items required by Lender to be paid in advance/900 section, right after the insurance policy. You're saying this is wrong, DAvid?

I've got just the opposite answer from HUD - and so did someone else that posted it to BOL. I'd love to see this in a FAQ from HUD so we stop getting conflicting answers.

Our state banking association got the same answer as I did. And HUD expects us to do it right when they give conflicting answers.

I have a question. If you have a changed circumstance, and you re-issue a new GFE, how long do you have to wait before you can close the loan? Also, does a change in the amount of certain fees (attorneys fees, appraisal fee, etc...) count as a changed circumstance?

Are there any requirements on what the list you give customers to pick from must look like for the services they can select?