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#1643110 - 12/23/11 09:23 PM
Comparison Chart and Improperly Revised GFEs
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New Poster
Joined: Jul 2011
Posts: 5
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How is the GFE column in the Comparison Chart completed if there have been multiple revised GFEs, but some of the revised GFEs contained, in addition to increased charges related to an allowable changed circumstance, increased charges not related to those circumstances?
Should just the figures from the most recent GFE be used, even though that one contained some unallowable increases along with the allowable ones? Or, rather, should the lender analyze each charge and insert the value from the last time it was reflected on a GFE properly, thereby rending the GFE column unsupported by any single GFE version? Or – the last option I can think of – does the lender revert back to the last entirely proper GFE and use the values from that, despite the intervening occurrence of legitimate changed circumstances?
Many thanks!
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#1643345 - 12/27/11 05:51 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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100 Club
Joined: Oct 2011
Posts: 185
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We review charge by charge....if we had a valid changed circumstance that increased the Title Services, for instance, and the recording fees were inadvertantly increased then we would use the most recent disclosed figure that was correct for recording fees.
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#1643456 - 12/27/11 08:16 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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100 Club
Joined: Oct 2011
Posts: 185
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Maybe I didn't explain this very well....when we go to closing the latest GFE fees are inserted on the comparision chart, we can all agree on this.
Because we manually review fees line by line from one GFE to the next in our pre-closing audit it is obvious if one of the fees has been inadvertantly changed in the absence of a valid changed circumstance. In that case we go back to the most recent "correct" fee for that line and use it on the comparision chart. We would not take fees from all lines of that previous GFE for the comparision chart, just the fee in question. This may or may not be a pleasing practice for everyone but our compliance officer felt it was the most conservative way to handle the mistake of changing a fee from GFE to GFE in the absence of a valid changed circumstance.
Of course we only apply this procedure to fees subject to a tolerance on the comparision chart and let me add that this is a rare occurance at our bank.
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#1643795 - 12/28/11 05:21 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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100 Club
Joined: Oct 2011
Posts: 185
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How can this be construed as unfair or deceptive when it is always to the benefit of the customer??
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#1643832 - 12/28/11 05:42 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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10K Club
Joined: Nov 2002
Posts: 20,654
The Swamp
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That was kinda my thought, RF...if the fees grew without a valid CC, then going with the prior lower fee (which should have been carried over to the revision) seems in the customers best interest.
_________________________
My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#1643883 - 12/28/11 07:00 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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100 Club
Joined: Oct 2011
Posts: 185
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Well none of this is "proper" as we are discussing what to do when you don't do what you are supposed to do...our feeling is that the most conservative approach is best which would be to go back to the last correctly disclosed fee for that line.
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#1643925 - 12/28/11 07:54 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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100 Club
Joined: Oct 2011
Posts: 185
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Truffle, you are right...this is all about the borrower being able to shop and if we inadvertantly show an increase in a fee how is that hurting the borrower and their ability to shop, and if we use the lesser fee on the comparision chart how is that hurting the borrower and their ability to shop? All any of this could do is hurt US by losing a customer because they think our fees are too high or having a tolerance cure on the HUD.
Kathleen, we are not picking amoung "various" GFEs. As I said this is not common here but when we came across the 1st example of a fee increasing without a valid changed circumstance our compliance officer made that executive decision to not "pad" the comparision chart with the inflated fee but to use the "correct" fee from the prior GFE. I guess we are just left to decide individually which "deceptive practices" we want to avoid.
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#1644068 - 12/29/11 01:29 PM
Re: Comparison Chart and Improperly Revised GFEs
JSW3178
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10K Club
Joined: Nov 2002
Posts: 20,654
The Swamp
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It's a no win situation, really. If you use the most recent GFE, you have incorrectly disclosed. If you use those 'inflated' charges, you could be 'padding' your comparison.
If you are trying to correct a couple of situations where it was done incorrectly, rather than picking an choosing among several GFE's, it may make more sense in the long run to prepare a GFE as it should have been and use that one with explanation of the rhyme and reasons behind it.
Just a suggestion...no matter what you do, it's going to be 'wrong' in one aspect or another. Since you would be lowering fees, perhaps this would be a better solution in the long run?
_________________________
My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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