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#1665405 - 02/15/12 01:44 PM GFE Comparison on HUD
bugleboy Offline
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Joined: Jan 2005
Posts: 136
Ohio
If a changed circumstance occurs because of a change in fees and a new GFE is given to the applicant, is the most recent changed information used in the "Comparison of Good Faith Estimate and HUD-1 or is the comparison to the original GFE? Our thoughts are the most recent (and accurate) GFE information should be compared to the actual costs on the HUD-1 and the redisclosure of new GFE costs replaces what was originally disclosed. The purpose of the GFE is to give an applicant the best estimate of settlement charges and if the application proceeds to closing the most accurate and most recent estimates would be the basis of comparison on the HUD-1. Are we correct in this?
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RESPA
#1665412 - 02/15/12 01:53 PM Re: GFE Comparison on HUD bugleboy
AFaquir Offline
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AFaquir
Joined: Jan 2011
Posts: 763
Top of the world... and never ...
A currecnt Changed GFE, provided it was disclosed correctly, is used for the comparison table... if not you would be setting yourself up to have a tolerance issue on something that wasn't a tolerance issue.

Cheers!
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#1665435 - 02/15/12 02:35 PM Re: GFE Comparison on HUD bugleboy
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
Along these lines let me throw this out there.....

If we discover a fee was increased on a redisclosure in absence of a valid changed circumstance (like a fee not related to the circumstance) we go back to the previous GFE dollar amount as the fee for the comparision chart. This is a risk based decision by our compliance officer, since the FAQ's don't give specific instructions in this situation, not to appear as though we are padding the GFE side of the chart.

Thoughts?

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#1665449 - 02/15/12 02:32 PM Re: GFE Comparison on HUD bugleboy
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
My first thought is a change in fees does not qualify as a change circumstance or allow the issue of a revised GFE. You must first have a changed circumstance before fees can change and a revised GFE issued.

If fees were changed that should have not been then you must revert to the original GFE. Changing fees not affected by the changed circumstance is a violation of 1024.7(f) therefore a violation of Sec. 5 of RESPA. The only way to cure that violation is to make the proper cure restitution within 30 days.
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The opinions expressed are mine and they are not to be taken as legal advice.

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