In a situation where a HELOC is being termed out and modified into a HELOAN, a GFE was issued with the accrued interest through the date of renewal being reflected as "Interest Through..." in box 6 of the GFE.

It is my understanding that these amounts should not be reflected on the GFE.

Is that correct?

The accrued interest is not a settlement service and has no place on the GFE.

That's what I thought.

Okay...two more questions....1) when it comes to the HUD, where do you suggest putting the accrued interest? 1300 - Additional Settlement Charges? and 2) is it a prepaid finance charge?

Never mind.....in this case, it should have ultimately been part of the payoff for the existing loan and if the new loan amount does not cover it, then the borrower would be responsible for the difference.

That was my thought in my original replay but there are some FI that will not finance accrued interest. If that was the case the accrued interest would go in the 1500 series of the HUD 1A and lines 104 or 105 of the HUD 1.