This may be a dumb question and I apologize if it has already been addressed in this thread but...say we are in position where we need to reissue the GFE. I understand that we need to provide the new GFE within 3 days of discovering the changed circumstance. Would we need to restart the 10 days?

If you need to reissue due to changed circumstances or borrower requested change, the answer is "yes."

12) Q: If a revised GFE is provided due to changed circumstances or a borrower requested change, is it necessary to complete Line 2 of the "Important Dates" section on the revised GFE if the shopping period has ended and the borrower has already expressed intent to continue with the application?

A: Yes, the loan originator must complete Line 2 in the "Important dates" section. The date entered must be at least 10 business days from the date the revised GFE is provided to the borrower.

Thank you.

During a recent telephone seminar on the new Respa changes the facilitator stated that it will be prohibited to ask for proof of income such as W-2's/paystubs at application. She said that we would have to wait until the customer receives the GFE either by mail or in person. Does anyone else know about this?

Thanks!

Yes, that's true. You can't request income or asset info until after they are delivered the GFE.

Which, is really stupid, because you can get the credit report fee and obtain the report right away. Which means you can deny them on credit during the first 3 days, but not on income if you need to see the W-2s and paystubs to determine.

Also, this will cost borrowers more because many will have to go have copies made and mail or fax them to you instead of having you copy them at time of application.

I had searched HUD's website and couldn't find anything. This is a pretty important point. You would think they would want to make sure we know!

Thanks!

I know you can't make issuing the GFE subject to the customer providing that info, but if they bring it in anyway, why is that not acceptable? I haven't seen a restriction on that-I'd love a reference if someone has one.

Don't think I have a reference beyond what our compliance group presented. Would love to see it too.

My understanding was that if they brought it in to you, you could use it. You just may not "request" it.

Thanks Bullseye.

I found another thread that may help...check it out:

Pre-Approvals under new RESPA Rule

This thread is so long, I apologize if this is a repeat....
We do not require a formal appraisal on 80% of our Home Equity loans. If the borrower wants, they may request an appraisal to try for that higher value, and I understand that this additional appraisal fee would be a changed circumstance and we would re-disclose. What if the borrower brings us a current, acceptable appraisal? Do we then have to redisclose with the Appraisal Fee (which he paid prior to our loan) and list the fee on the GFE which would be carried as a p.o.c. on the HUD. Wouldn't that creat a discrepancy between the GFE and HUD, since there is no distinction for poc on the GFE, but the poc amount is not included in the total on the HUD? Granted, it would be not be an increase(higher) on the HUD, but rather an overdisclosure on the GFE. We are testing for these different scenarios.

Review the following thread.

previous discussion

Agree...so, if they come in in person and receive the GFE, you can go on with things. As has been said before, just how many people do you really think will take advantage of the 10 day shopping "spree"? You simply can't condition GIVING a GFE on receiving that info.

So dumb question #2 from me today. Back to the 10 days...we don't have to wait the full 10 days to close the loan, correct?

No Sarah-just make sure you close within the proper TIL parameters-

That's what I thought. Thanks Sox

Doea anyone know where a good summary of these rules is located. I'm pretty sure ABA published one, but haven't been able to locate.

The ABA did not publish a Toolworks on the Reg. X changes like they did for the TILA MDIA/HOEPA/HPML changes.

The OTS had a telephone seminar on 11/3 with HUD officials. The slides and transcript are available on the following web page.

http://www.ots.treas.gov/index.cfm?p=Events&Date=03-Nov-09

Thanks! I attended that, but didn't think about referring back to use as a summary.

I really wish ABA would have put out a Works on this subject, but I'm not sure how possible that could have been given how many times the Q&As were updated.

For Clarification, DU = Desktop Underwriter?, what is LP? Our processors are wanting to put our Underwriting fee in Block 3, I feel it should be in Block 1. What can help support my opinion?

Thanks

LP = Loan Prospector. Freddie Mac's automated underwriting system.

LP = Loan Prospector. It's Freddie's version of DU

The underwriting fee is an origination charge and must be shown in block 1.

From Federal Register / Vol. 73, No. 222 / Monday, November 17, 2008 / Rules and Regulations page 68253:

Block 1, ‘‘Our origination charge.’’—The
loan originator must state here all charges
that all loan originators involved in this
transaction will receive, except for any
charge for the specific interest rate chosen
(points). A loan originator may not separately
charge any additional fees for getting this
loan, including for application, processing, or
underwriting. The amount stated in Block 1
is subject to zero tolerance, i.e., the amount
may not increase at settlement.

DD-underwriting fees belong in block 1-all of the FAQ's and various "how to" guides make it clear that type of fee goes in block one.