Thread Options
|
#1407272 - 06/23/10 06:48 PM
GFE - Change Loan Amount
|
Power Poster
Joined: Aug 2001
Posts: 7,364
|
I should know the answer to this but......
If a GFE has been provided, but subsequently, the loan amount increases but no fees are affected, is it necessary to issue a new GFE?
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1407276 - 06/23/10 06:51 PM
Re: GFE - Change Loan Amount
swiggles
|
10K Club
Joined: Aug 2002
Posts: 47,680
Bloomington, IN
|
No. The only time you are mandated to issue a revised GFE is when the consumer exercises a rate lock option.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1407277 - 06/23/10 06:51 PM
Re: GFE - Change Loan Amount
swiggles
|
100 Club
Joined: Jul 2009
Posts: 187
|
If you have a "changed circumstance" you may, but are not required to issue a revised GFE that reflects an increase in those fees directly related to the changed circumstance.
|
Return to Top
|
|
|
|
#1407750 - 06/24/10 05:50 PM
Re: GFE - Change Loan Amount
rockchalk02
|
Gold Star
Joined: Jun 2010
Posts: 350
Lost in the rain.
|
Better make sure you don't have any fees that are determined as a % of the loan amount.
_________________________
Where I go there I am.
|
Return to Top
|
|
|
|
#1407795 - 06/24/10 06:31 PM
Re: GFE - Change Loan Amount
West Coast Comp
|
Power Poster
Joined: Aug 2001
Posts: 7,364
|
Thanks....as I stated in my original post, no fees affected.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1418614 - 07/22/10 03:48 PM
Re: GFE - Change Loan Amount
swiggles
|
100 Club
Joined: Feb 2008
Posts: 142
|
I also was understood the following section of 3500.7 to mean that you could provide a new GFE but it was not a requirement.
3) Borrower-requested changes. If a borrower requests changes to the mortgage loan identified in the GFE that change the settlement charges or the terms of the loan, the loan originator may provide a revised GFE to the borrower. If a revised GFE is to be provided, the loan originator must do so within 3 business days of the borrower’s request.
However, our state bankers association shared the following response from HUD regarding those times when the loan amount disclosed on the GFE changes and if a revised GFE must be provided.
The loan amount and monthly payment amount would change, and the loan originator is bound by the terms of the GFE at closing – if you did not issue a revised GFE to indicate the changes to the terms due to a change in the loan amount, you would Section 5 of RESPA.
David L. Friend, Esq. Office of RESPA and Interstate Land Sales Department of Housing and Urban Development
Any thoughts?
|
Return to Top
|
|
|
|
#1418800 - 07/22/10 06:19 PM
Re: GFE - Change Loan Amount
Valley Girl
|
Power Poster
Joined: Aug 2001
Posts: 7,364
|
It says that the lender "may"....not "must" provide a new GFE. Isn't the lender bound by the fees disclosed?....not necessarilly the terms?
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1418837 - 07/22/10 06:53 PM
Re: GFE - Change Loan Amount
David Dickinson
|
Power Poster
Joined: Aug 2001
Posts: 7,364
|
Oh.....I'm sooooooo proud!! David agrees with me! Cool!!
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1418846 - 07/22/10 06:57 PM
Re: GFE - Change Loan Amount
swiggles
|
Power Poster
Joined: Nov 2003
Posts: 3,738
|
Oh.....I'm sooooooo proud!! David agrees with me! Cool!! Makes you feel pretty good when a guru agrees with you, doesn't it??
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
|
Return to Top
|
|
|
|
#1418857 - 07/22/10 07:02 PM
Re: GFE - Change Loan Amount
David Dickinson
|
10K Club
Joined: Jul 2003
Posts: 17,410
|
David Friend is making this one up, I believe. I find no where in RESPA where it states this. David, I hope you don't end up eating those words. How is this different from what he and HUD have been making up on what to show for balloon note dates and/or whether a fee not charged has to show on p. 3 of the HUD? To be honest, the part quoted above scares me. Seems we better be disclosing on changed loan amounts too. How much you wanna bet this is in the next Round-up?
|
Return to Top
|
|
|
|
#1418913 - 07/22/10 07:47 PM
Re: GFE - Change Loan Amount
David Dickinson
|
10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
|
In defense of FDIC, however...their interpretation came FROM HUD...so did the FRB's, who were given that same interpretation...I'm just happy it got cleared up "officially" because that was a misleading as it gets, IMHO!
_________________________
My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
|
Return to Top
|
|
|
|
#1419125 - 07/23/10 01:13 PM
Re: GFE - Change Loan Amount
Truffle Royale
|
10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
|
TR..I put my app in at Wally World to be a greeter..come join me! Seriously, tho...the new bill is going to be a hassle no doubt and so much to inact in a relatively small amount of time...but alot of it is pretty easy stuff (so far it seems...I hope I didn't just jinx anything ) and some of it we have been hearing rumblings of for YEARS! (Like combining TIL and RESPA for instance and adding more fees to the High Cost calcs). Truth be known...with all the major changes over the past couple years that we've had to deal with, I think we can handle whatever they dish out now. (Hey..might as well be optimistic...right? )
Last edited by RR joker; 07/23/10 01:13 PM.
_________________________
My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
|
Return to Top
|
|
|
|
#1419247 - 07/23/10 03:05 PM
Re: GFE - Change Loan Amount
RR Joker
|
Power Poster
Joined: Aug 2001
Posts: 7,364
|
Truth be known...with all the major changes over the past couple years that we've had to deal with, I think we can handle whatever they dish out now. ABSOLUTELY!!! And the passage of the bill opened a door for the Compliance Department here at my bank! We're going to get to hire another person! Woot, woot!!
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1419344 - 07/23/10 04:45 PM
Re: GFE - Change Loan Amount
swiggles
|
Power Poster
Joined: Nov 2003
Posts: 3,738
|
[/quote]And the passage of the bill opened a door for the Compliance Department here at my bank! We're going to get to hire another person! Woot, woot!! [/quote] Can I work from IL??? I need a job!
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
|
Return to Top
|
|
|
|
#1419349 - 07/23/10 04:57 PM
Re: GFE - Change Loan Amount
Tesla
|
Power Poster
Joined: Aug 2001
Posts: 7,364
|
[/quote]And the passage of the bill opened a door for the Compliance Department here at my bank! We're going to get to hire another person! Woot, woot!! Can I work from IL??? I need a job! [/quote] They won't even let ME work from HOME! So I suspect they will not let you work from IL. The position will probably be starting pay and "clerk" type work. Wait!.....hmmmm.....maybe I will apply for the job....less stress.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1419355 - 07/23/10 05:01 PM
Re: GFE - Change Loan Amount
swiggles
|
Power Poster
Joined: Nov 2003
Posts: 3,738
|
Well, I had to try - been looking since December...
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
|
Return to Top
|
|
|
|
#1419397 - 07/23/10 05:51 PM
Re: GFE - Change Loan Amount
Tesla
|
Platinum Poster
Joined: Aug 2006
Posts: 980
|
Ok, so I know that HUD giving different answers to the same questions is par for the course, but I just wanted to share the response I got when I asked if we HAD to re-disclose because the loan amount changed (i.e. "the scenario I described"):
RESPONSE: If the rate has expired you would also have to issue a revised GFE. Also, if there is a changed circumstance where you may issue a revised GFE and the borrower requests a GFE to reflect the changes to the GFE you then must issue a revised GFE. If the borrower does not request a revised GFE then you can issue a revise GFE or you can stand by the original GFE in the scenario you have described.
I have no idea who responded (no name on email) so I'm sure it was someone below David, but since I have this in writing this is what I'm going by for now!
|
Return to Top
|
|
|
|
#1419483 - 07/23/10 07:11 PM
Re: GFE - Change Loan Amount
MN Banker
|
10K Club
Joined: Nov 2000
Posts: 18,765
Central City, NE
|
RESPONSE: If the rate has expired you would also have to issue a revised GFE. Also, if there is a changed circumstance where you may issue a revised GFE and the borrower requests a GFE to reflect the changes to the GFE you then must issue a revised GFE. If the borrower does not request a revised GFE then you can issue a revise GFE or you can stand by the original GFE in the scenario you have described. First sentence - not true. Which they state correctly in the 2nd 1/2 of the last sentence - you can stand by the original GFE. If the borrower requests a GFE to reflect changes . . you MUST issue a revised GFE???? Where is that in the regulation? There's no name on the email? Wow! I wouldn't count it anymore than the paper it's written on. You may want to reply back and ask them who issued this and give them my responses. I wouldn't go by it for now at all.
|
Return to Top
|
|
|
|
#1419541 - 07/23/10 07:41 PM
Re: GFE - Change Loan Amount
David Dickinson
|
Platinum Poster
Joined: Aug 2006
Posts: 980
|
Oh, I totally agree that the first two sentences are basically made up.
Why wouldn't you go by it since there is no name? They replied to my email so obviously it's from them. I mean, they say we can email them at a particular email address for questions, but because they didn't put a name on it I can't rely on it? Considering answers by David Friend himself aren't always right I'm not going to worry about it. The last two (including that one) that I got back from them did have what appears to be initials in the subject line. Good enough for me - at this point I've lost the will to fight it (and I know that's a crappy attitude, I just can't stand this back and forth from HUD anymore)
|
Return to Top
|
|
|
|
|
|