If a lender transposes the numbers in giving the loan amount to a processor in order to prepare the GFE, can a changed circumstance form be done to increase origination fees, and show the correct loan amount? (e.g. $105,000 disclosed and fees calculated on when actually was $150,000) Or are we stuck with the origination fees disclosed, even though the loan amount is incorrect?

Nope. Definitely not. Your mistake does not equal a Changed Circumstance.

Is the customer going to close on a $105,000 loan??? Why wouldn't they "request" an increase to the loan amount (which is a valid changed circumstance)

No the $150,000 was the actual amount of the loan. The lender transposed and had the processor disclose the GFE based on $105,000 and fees based on this amount, rather than the $150,000.

That was my thinking...just needed another opinion.

You've got an application that reads $150,000, right?
This is a blatant error.
Sure, you can stand on your head and do tricks like getting a new app and then doing a changed circumstance but you will never see me advocate that on this or any other board.
You made a mistake.
Make the cure.
Learn the lesson for next time.

Not advocating any head standing or trick execution, just throwing out a question that came to mind in reference to the topic at hand as I thought this was a "discussion" forum, my mistake....

Didn't mean to offend, Rules.
All I can say is I've been getting a lot of slight of hand suggestions made to me lately, mostly by people who just didn't take the time to proof their work.
Nearly two years into RESPA I just don't understand.

No kidding... lots of sloppiness lately. Uptick in prodcution does not mean a sidelining of the rules.

So, our originator misquoted one of the fees that VA requires. The correct fee is higher, making the loan amount higher and subsequently the payment amount higher.

I get it that we cannot increase the VA fee and have to give a tolerance cure at closing, but what about the fact that the loan amount will increase as well as the payment amount? We have to use the correct loan amount in order to sell the loan in the secondary market.

The customer did not request the increase in the loan amount but there will be an increase. How is that disclosed? I am so confused

Bump!

Why would the loan amount need to be higher if the Bank is going to have to eat the fee?

The way I understand it, the VA charges a fee that is a certain percentage of the loan amount and that fee is added to the loan. When the loan is sold to the VA it has to be for that exact dollar amount. The originator used the incorrect percentage when calculating the loan amount so the loan will not be reflective of the correct percentage for the fee.

Does this make sense? See why I am confused.

The originator used something like 2.75% and it should have been something like 3.25%. She said this percentage has been fluctuating a lot lately and she just picked up the wrong percentage.

This fee would have to be included in Block 1 of the GFE which is zero tolerence. So the Bank is going to eat the entire difference, so that is why I can't see that the loan amount would change.

The originator said that the funding fee is usually financed into the loan. She is not certain that VA allows the VA funding fee to be split. She is waiting on VA’s response to this.

As I recall, VA does not allow one to partially finance and partially pay the Funding Fee-it is either all or nothing.

The Funding Fee shows in Block 3 (same as FHA UFMIP) so it would be subject to the 10% tolerance.

Over the last couple months, the VA has been back and forth on the Funding Fee, thanks to Congress. It was extremely confusing and stressful.