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#1323562 - 01/13/10 03:30 PM Re: RESPA changes 1-1-10 RR Joker
ImGoinNuts Offline
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Originally Posted By: RR joker

Quote:
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.



Originally Posted By: Truffle Royale
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........ eek


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.


We are doing the same as RR Joker
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RESPA
#1323570 - 01/13/10 03:36 PM Re: RESPA changes 1-1-10 ImGoinNuts
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Somewhere in the middle
Any other MORVission users out there? They have set there system to default question 2 in the Important Date section of the GFE to default to NA unless the rate is locked mad

I am arguing with tem that it needs to be 10 days from completion of GFE per RESPA and the FAQ.

Their argument is that "We" don't want to commit to fees until you know the program and rate the borrower wants. I explained to them the reasons they use for the use of NA are permissible Changed Circumstances under the Reg.
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#1323578 - 01/13/10 03:42 PM Re: RESPA changes 1-1-10 DD Regs
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On occasion we receive an appraisal that indicates that part of the property is in poor condition. For example, the appraiser indicates that the roof is in poor condition. Typically, we would then request that the applicant have the roof inspected. With the need for the inspection, we would consider this a changed circumstance and issue a revised GFE.

When would the three day clock start for issuance of the revised GFE? At the time that the appraisal was received by the bank (even though it has not yet been reviewed by underwriters) OR when the bank’s underwriters have had an opportunity to review the appraisal? It is the bank’s underwriters that decide if an inspection is to be requested.

My opinion is that is when the underwriters have had a chance to review the appraisal and make a determination that an inspection is needed. Is this correct?
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#1323604 - 01/13/10 04:01 PM Re: RESPA changes 1-1-10 DD Regs
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Originally Posted By: DD Regs
Any other MORVission users out there? They have set there system to default question 2 in the Important Date section of the GFE to default to NA unless the rate is locked mad

I am arguing with tem that it needs to be 10 days from completion of GFE per RESPA and the FAQ.

Their argument is that "We" don't want to commit to fees until you know the program and rate the borrower wants. I explained to them the reasons they use for the use of NA are permissible Changed Circumstances under the Reg.


We have tied this field to the issue date, or re-issue date, of the GFE. It's my understanding that there is a date field that ties to this that you should be able to fill in.
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#1323617 - 01/13/10 04:16 PM Re: RESPA changes 1-1-10 DoorKey
RR Joker Offline
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Originally Posted By: DoorKey
On occasion we receive an appraisal that indicates that part of the property is in poor condition. For example, the appraiser indicates that the roof is in poor condition. Typically, we would then request that the applicant have the roof inspected. With the need for the inspection, we would consider this a changed circumstance and issue a revised GFE.

When would the three day clock start for issuance of the revised GFE? At the time that the appraisal was received by the bank (even though it has not yet been reviewed by underwriters) OR when the bank’s underwriters have had an opportunity to review the appraisal? It is the bank’s underwriters that decide if an inspection is to be requested.

My opinion is that is when the underwriters have had a chance to review the appraisal and make a determination that an inspection is needed. Is this correct?


I would agree with this thought process...as soon as you have knowledge of the need...so that's as soon as you are made aware of it.
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#1323619 - 01/13/10 04:18 PM Re: RESPA changes 1-1-10 DD Regs
RR Joker Offline
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Originally Posted By: DD Regs
Any other MORVission users out there? They have set there system to default question 2 in the Important Date section of the GFE to default to NA unless the rate is locked mad

I am arguing with tem that it needs to be 10 days from completion of GFE per RESPA and the FAQ.

Their argument is that "We" don't want to commit to fees until you know the program and rate the borrower wants. I explained to them the reasons they use for the use of NA are permissible Changed Circumstances under the Reg.


Boy, they sure are setting up their users for a compliance disaster aren't they!
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#1323620 - 01/13/10 04:18 PM Re: RESPA changes 1-1-10 DoorKey
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FAQ p13 3) under Changed circumstances answers your questions. revised GFE must (be done) within three business days of receiving the information sufficient to establish changed circumstances. imho, that means when you KNOW you're going to need the roof inspection. You don't know that until the appraisal has been reviewed and the underwriter calls for it.

My question: What do you do if the insurance is left off the GFE? I know if the bank misses a fee in block three they have to eat it but do I do revised GFE to show either of these items? I have one so I need the answer asap. Thanks!

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#1323628 - 01/13/10 04:23 PM Re: RESPA changes 1-1-10 Truffle Royale
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Truf, I would issue a revised one.
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#1323638 - 01/13/10 04:32 PM Re: RESPA changes 1-1-10 RR Joker
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Revised with just the insurance, right Joker? I'm stuck with the fees being left off, right? I can't even show them on the HUD as PBL because I never disclosed them as fees, correct?

Sorry for the stupid questions. I just want to make sure I correctly fix this first wrong one.

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#1323750 - 01/13/10 05:53 PM Re: RESPA changes 1-1-10 Truffle Royale
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Just bumping this one-

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.

Thanks to all/any.

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#1323751 - 01/13/10 05:54 PM Re: RESPA changes 1-1-10 biz
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I say no to redisclosure just to change the date, biz.

Any takers on my redisclosure issue? I need help fast!

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#1323971 - 01/13/10 07:34 PM Re: RESPA changes 1-1-10 Truffle Royale
MarieR Offline
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I agree Truff that you would just add the insurance on the GFE.

But I am not sure about the HUD. I would think that you would still show them on the HUD as PBL since they are fees associated with the closing, but I am not confident in my answer.
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#1324087 - 01/13/10 08:33 PM Re: RESPA changes 1-1-10 RR Joker
Likes to Comply Offline
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I've received some responses to questions I've asked HUD...I thought the replies might be helpful.

1. If the lender does not charge the customer for a credit report does it still have to be disclosed on the GFE and on the HUD as POC Lender?
HUD Rep's answer-If the charge for the credit report is not charged to the borrower it does not have to be disclosed.

2. If an attorney prepares documents such as Mortgage, Exhibit, Notice of Seizure, Cash Sale, where should the fee be disclosed?
HUD Rep's answer was it should be disclosed in Block 4.

3. When and where to disclose property tax on the GFE and HUD 1/1A.
HUD Rep's reply was that the only time property taxes are disclosed on the GFE is those held in escrow, page 2, Block 9. There are two occasions you will have the borrower paying taxes that do not appear on the GFE:
1. Tax payments due at the time of closing.
2. Adjustments between buyer and seller.
In both cases, these must be put either on the HUD1 or HUD1A. You would show the tax adjustment on 107/407 or 211/511 (which ever applies). Tax payments to be dispursed, as in a refinance, should be disclosed in between lines 1302-1305, Additional Settlement Charges, and clearly identified.

Just thought I'd share this...hope it is helpful.
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#1324104 - 01/13/10 08:47 PM Re: RESPA changes 1-1-10 Likes to Comply
MN Banker Offline
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Originally Posted By: Rookie

1. If the lender does not charge the customer for a credit report does it still have to be disclosed on the GFE and on the HUD as POC Lender?
HUD Rep's answer-If the charge for the credit report is not charged to the borrower it does not have to be disclosed.


Are you freakin kidding me?? Since when?? Does anyone else agree with this?

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#1324109 - 01/13/10 08:49 PM Re: RESPA changes 1-1-10 Likes to Comply
Dan Persfull Offline
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Quote:
1. If the lender does not charge the customer for a credit report does it still have to be disclosed on the GFE and on the HUD as POC Lender?
HUD Rep's answer-If the charge for the credit report is not charged to the borrower it does not have to be disclosed.


If that's the logic then all fees paid by someone other than the borrower would not have to be disclosed.

You may not charge the borrower direct for the credit report but you are paying the report out of your origination charges so in essence the borrower is paying for the report and Appendix A is very clear that any fee paid to the lender and not retained by the lender then the ultimate receiver of the funds must be disclosed.

I may be the only one but I disagree with this answer 200%.
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#1324126 - 01/13/10 08:58 PM Re: RESPA changes 1-1-10 Likes to Comply
todd cook Offline
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God's country, NW OK
2. If an attorney prepares documents such as Mortgage, Exhibit, Notice of Seizure, Cash Sale, where should the fee be disclosed?
HUD Rep's answer was it should be disclosed in Block 4.


Wow. I thought mortgage prep fee had to be included with our origination charge. Who is your HUD contact?

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#1324142 - 01/13/10 09:10 PM Re: RESPA changes 1-1-10 todd cook
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Todd-If the atty is preparing the docs and charging the fee, why would it be in block 1?
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#1324149 - 01/13/10 09:14 PM Re: RESPA changes 1-1-10 MN Banker
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Originally Posted By: MN Banker
Originally Posted By: Rookie

1. If the lender does not charge the customer for a credit report does it still have to be disclosed on the GFE and on the HUD as POC Lender?
HUD Rep's answer-If the charge for the credit report is not charged to the borrower it does not have to be disclosed.


Are you freakin kidding me?? Since when?? Does anyone else agree with this?


I definitely do not agree this is correct. The answer to the first question on page 10 of the 12-30-09 FAQs states: "All charges typically paid by the borrower must be disclosed on the GFE regardless of whether the charges will be paid for by the borrower, the seller, or other party."
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#1324153 - 01/13/10 09:17 PM Re: RESPA changes 1-1-10 TB 12
todd cook Offline
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HUD FAQ #6 on page 23:
Q: Are attorney's fees charged to prepare loan documents for the lender considered part of the charge for origination services disclosed on Block 1 of the GFE?
A: Yes, attorney's fees charged to prepare loan documents for the lender are considered part of the charge for origination services disclosed on Block 1 of the GFE and should not be separately itemized.

Also see FAQ #2 on page 23.

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#1324197 - 01/13/10 09:40 PM Re: RESPA changes 1-1-10 todd cook
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If paying points on a FreddieMac loan comes out of the net funding of the loan how is that to be disclosed on the GFE?

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#1324218 - 01/13/10 09:50 PM Re: RESPA changes 1-1-10 todd cook
4newt Offline
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Here's a good one...... Texas state law says doc prep can only be done by an attorney. Therefore, we can't include that fee in the bank's origination charges as a fee we are charging. We would have to disclose it somewhere else. Any takers?

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#1324238 - 01/13/10 10:10 PM Re: RESPA changes 1-1-10 4newt
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This new RESPA doesn't take the TIL or high cost into consideration at all. It lumps all the attorney charges onto one line. Is that now to be considered an APR fee?

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#1324239 - 01/13/10 10:10 PM Re: RESPA changes 1-1-10 4newt
todd cook Offline
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My understanding is this fee would yet be included with Block 1 as part of "our origination charge". Again, reference the HUD FAQs. I know nothing of Texas state laws, so I dont know if you are not allowed to include the fee there.

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#1324243 - 01/13/10 10:12 PM Re: RESPA changes 1-1-10 RR Joker
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ok i hope you guys can help with this one.

We have issued our first GFE and it is available for 10 days. on the 6th day say, we have to reissue because of a changed circumstance and the rate is not locked. I understand that we have to start the 10 day availablity over again. Now what i need to know is, after we have done the reissue and the GFE starts over, can we close before that second 10 day period is up??

i hope this makes sense, we were having a discussion.

Thanks!
Jessie
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#1324244 - 01/13/10 10:12 PM Re: RESPA changes 1-1-10 ACloser
todd cook Offline
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Originally Posted By: ACloser
This new RESPA doesn't take the TIL or high cost into consideration at all. It lumps all the attorney charges onto one line. Is that now to be considered an APR fee?



No.

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