When a rate is locked, lenders are issuing revised GFE's. These revised GFE's may have updated escrow amounts and prepaid interest due to Calyx not being able to lock down the original GFE and this information is automatically updated through the processing of the file.

Is it a violation of RESPA to have these fields changed when the only reason we are issuing a revised GFE is a rate lock (no other change in circumstance)?

Yes.

We have the same problem here and have to go back and forth changing things to make sure that the revised has the same numbers as the original in the fields that are not affected and should not change.

We are adding "Update escrow to accurate figures" to our Changed Circumstance form when this happens. It always happens when we have a "valid" changed circumstance late in the processing of the loan and more accurate figures have been plugged into our system. Our bank compliance officer advised us to do this so an auditor would know that we knew the figures changed. As this number does not fall in a tolerance comparision field it can not be construed as "padding" our tolerance, just giving a more accurate number.

Acknowledging the change doesn't make it less of an error.
RESPA makes it very clear that can only change the numbers that are affected by the changed circumstance.
I suggest you talk to your software provider and get them to fix the problem. It IS fixable.
And I can tell you firsthand that examiners do not take 'software issues' as an excuse.

Our software works the same way but only if the lender has to change the estimated closing date due the the date on the original GFE now being in the past. Interest and escrow are not tolerance items so we feel that the spirit of the regulation is not to change the tolerance items without a valid changed circumstance. Our examine is in January so we'll have to wait and see if it's going to be a problem.

That one would be a good one for HUD to clarify since it would be more deceptive to re-disclose to a borrower on 10/19 with a closing date of 11/1/11 and have item 10 still state that closing date would be 09/25/11.

jl, please mark this thread so you can let us know how/if your examiners comment on this. Also let us know who your regulator is, if you don't mind.

If you feel more comfortable, remember there's an examination forum in the private bankers threads. It's very easy to register for those forums by contacting Andy or Michelle.

I emailed HUD today. Maybe they will get back with me before our exam. LOL!

Emailing HUD is a dead end. They're kaput when it comes to RESPA.
Email the CFPB. I've got the address at work if you need it.

yes please...

I found a post with a number and email address.

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1611869#Post1611869

That address rejected on me a couple of times. If you have trouble, pm me and I'll give you the one I used.
FYI: the CFPB CALLED me in response! So be prepared to discuss.

I'm going to twist this topic, but just a bit.

What's the consensus on re-issuing a GFE when the only thing that has changed is the rate lock? In other words, X% was disclosed and X% was locked the next day. In my opinion no "interest-rate dependent charges or terms" have been impacted by the rate lock - so is it necessary to issue a revised GFE to reflect that the rate wasn't locked yesterday, it is today, but your closing costs are identical?

RESPA instructs us to revise the Important Dates section of the GFE when the rate is locked. If yesterday's GFE doesn't reflect the correct dates in the Important Dates section then YES you are required to redisclose your GFE even if closing cost don't change.

Locking the rate is the only time RESPA mandates a redisclosure.
Yes, you MUST redisclose and change the date section on p.1 even if nothing else changes.

Thanks for the above.

I heard back from the CFPB and they said that escrows and prorated interest are not tolerance items and can be updated when a revised GFE is issued. This is the email address I used. They called me in about three business days....

RESPAInquiries@cfpb.gov

SERIOUSLY????!!!!!

HUD may have been DUH backwards and now the CFPB is going to come out of the gate flopping like a fish on a dock.

Great........

Can be, not has to be.

Good for them, that is just using plain logic... I hope this is a good sign of things to come!

I agree on the plain logic part...it only makes actual sense! scary.

....and the logic behind it is why our compliance officer requires we make the note on our Changed Circumstance form to identify the fact that we are aware the escrows changed. JL Roberts, thanks for sharing!

Yes, thank you for following up with us, JL.
But I'm not changing anything until something official comes out from CFPB by way of an updated FAQ or some similar document.
For now all we've got is the existing Reg and FAQ. I can't sell a change to my examiner if I haven't got it in writing.