The original GFE fees were disclosed correctly, but the loan amount was disclosed wrong. The loan amount needs to increase $300.00. Can we re-disclose? Or is that even a possibility?

No you cannot redisclose. No changed circumstance occurred.

I would think if your customer says "I want $300 more" (and if it's your bank's mistake, they probably would say that), then you have a changed circumstance--customer change of request. But if your fees are correct and aren't going to change based on the change in loan amount, it's not a tolerance issue anyway, so your actual loan amount can change and it won't matter whether you re-issued or not.

There was that FDIC phone conference discussion where the speaker implied that the GFE loan terms must match the loan terms on the HUD, implying that a new GFE must be re-issued even if the there is no changed circumstance, no changed fees. Sometimes the loan terms might be found to be different at closing. I have staff wanting to reissue the GFE at closing. That concept defies reason in my mind.

Usually I agree with raitch but not this time.
You've got an application that says $x.
The GFE you prepared says ($x-$300)
The error is right there for all to see.
Even if/when the borrower says 'but I wanted $300 more' you don't have a CC.

As to swiggles call, if you're calling the loan amount a loan term, then I have any number of GFE's that don't match the HUD re loan terms. Prime example, a loan where the loan amount must be lowered because the appraisal came in lower. You do not have to redisclose for lowering the loan amount. It's to the bank's advantage not to redisclose and lower fee amounts because that narrows their 10% tolerance window. It's obvious to the borrower (and communicated to them by the LO) that a lower loan amount will mean lower fees, so why would you redisclose?

Along those same lines...if the loan rate was floating all along...it may have started at 5% and ended at 5.5%, but was never locked 'by the borrower'...new GFE? I don't think so.

Where did the concept of "It's an estimate" get lost?

Either because they have no clue how a loan deal evolves through the loan process, or they are taking their cues from the large secondary market investors who require that the 'final' GFE terms match the HUD... they are probably seeing so many smaller banks doing this to meet their secondary market requirements, the examiners just figured we were supposed to be doing it that way!

^^^has made a good point.

Where did the concept of "the GFE is not a contract or promise to loan money" get lost?

How is there not a CC? We charge a 1% origination fee, which is subject to 0% tolerance. If a borrower requested an increase we would consider it a CC because our origination charge would increase correspondingly. I understand $300 isn't signicant, but in pricniple if you charge an origination charge based on loan amount, wouldn't that give you a CC?

My bad - I read the original post incorrectly - they disclosed in error, so there is no CC available.

Don't you have to deny and counter and upon acceptance of the counter, redisclose?

You can verbally counter offer and if they accept, no denial is necessary. No redisclosure is necessary either.