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#1431901 - 08/19/10 10:27 PM GFE Rate Lock but no interest dependent fees
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
I have a question for folks - If a lender locks the interest rate, but there are NO RATE DEPENDENT FEES - does the lender need to issue a new GFE?

The mandate to issue a new GFE is in RESPA, 3500.7 (f)(5)
Quote:
(5) Interest rate dependent charges and terms. If the interest rate has not been locked by the borrower, or a locked interest rate has expired, the charge or credit for the interest rate chosen, the adjusted origination charges, per diem interest, and loan terms related to the interest rate may change. If the borrower later locks the interest rate, a new GFE must be provided showing the revised interest rate-dependent charges and terms. All other charges and terms must remain the same as on the original GFE, except as otherwise provided in paragraph (f) of this section.


So if there aren't any interest rate dependent charges, why would a new GFE need to be issued?
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
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#1431925 - 08/20/10 12:32 AM Re: GFE Rate Lock but no interest dependent fees Princess Romeo
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
HUD says you must issue a new GFE when the rate is locked to update the "Important Dates". The only thing that change on the GFE when we lock a rate are dates 1 and 3.

19) Q: If a GFE has been provided and the interest rate has not been locked, can the loan originator provide a revised GFE when the borrower later locks the interest rate?
A: Yes, if a borrower locks the interest rate after the GFE has been issued, a revised GFE must be issued within 3 days of the interest rate lock reflecting the date that the interest rate lock is good through in Line 1 and N/A in Line 4 of the ―Important dates section of the GFE. Any interest rate-dependent charges (Block 2, Line A and Block 10 on the GFE) and terms that changed must also be updated on the revised GFE.

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#1431933 - 08/20/10 04:20 AM Re: GFE Rate Lock but no interest dependent fees jlroberts
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Thanks - those FAQ's - the gift that keeps on giving.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

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