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#1702645 - 05/23/12 07:49 PM reissue a GFE
nikki_compliance Offline
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Joined: Mar 2010
Posts: 520
NM
we have a construction loan that is maturing, at construction phase of loan we provide GFE's for both construction phase and permanent phase. We are now getting ready to do permanent closing however officer wants to change term from a 5 year balloon to a 3 year balloon, interest rate is the same the loan payment is also going down can we do this? can we reissue a GFE or are we bound to the terms on the GFE that was provided at time of construction phase?

thank you.

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#1702745 - 05/23/12 10:03 PM Re: reissue a GFE nikki_compliance
nikki_compliance Offline
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Joined: Mar 2010
Posts: 520
NM
anyone?

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#1702764 - 05/24/12 02:33 AM Re: reissue a GFE nikki_compliance
Truffle Royale Offline

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Posts: 17,351
First off, FAQ p21 states:
1) Q: If a transaction involves new construction in which the loan may not close for months, how does this affect the issuance of a GFE?
A: In transactions involving new home purchases, where settlement is anticipated to occur more than 60 calendar days from the time a GFE is provided, the loan originator may provide the GFE to the borrower with a clear and conspicuous disclosure stating that at any time up until 60 calendar days prior to closing, the loan originator may issue a revised GFE. If no such separate disclosure is provided, the loan originator may not issue a revised GFE in the absence of changed circumstances or another event as provided in 24 CFR 3500.7(f).


If you haven't locked the rate yet, you must redisclose and can capture any costs that change as a result of the rate lock.

Otherwise, if no costs are changing, I'm at a loss as to why you'd want to redisclose.

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#1702867 - 05/24/12 02:39 PM Re: reissue a GFE nikki_compliance
nikki_compliance Offline
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Joined: Mar 2010
Posts: 520
NM
so if we decide to reissue GFE (provided 60 day Disclosure) would we need a new application for permanent.

i would think the application what was accepted for construction permanent would cover both am i correct?

and thanks for your help

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#1702887 - 05/24/12 02:59 PM Re: reissue a GFE nikki_compliance
RulesFollower Offline
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Posts: 185
We have 2 applications if the perm is going secondary market (new Note and DOT). If the perm is only a modification and staying inhouse then we only have 1 application.

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#1702990 - 05/24/12 05:07 PM Re: reissue a GFE nikki_compliance
RR Joker Offline
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RR Joker
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Posts: 20,654
The Swamp
My question is...although you got the 60 day letter...it sounds like the LO is ready to close the perm loan with different terms...are you going to delay it 60 days in order to affect your 60-day letter?
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#1703071 - 05/24/12 06:43 PM Re: reissue a GFE nikki_compliance
nikki_compliance Offline
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Joined: Mar 2010
Posts: 520
NM
no perm loan does come due until july so we are going to just provide GFE at this point.

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#1703463 - 05/25/12 05:19 PM Re: reissue a GFE Truffle Royale
Always In Training Offline
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Where the Green Grass Grows
Originally Posted By: Truffle Royale
Otherwise, if no costs are changing, I'm at a loss as to why you'd want to redisclose.


I'm with Truff. If no costs are changing, you wouldn't want to redisclose the GFE. The term is allowed to be different. Your TIL APR, however probably needs to be revisited.

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#1703479 - 05/25/12 05:33 PM Re: reissue a GFE nikki_compliance
nikki_compliance Offline
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Joined: Mar 2010
Posts: 520
NM
agree so would i rediclose only the preliminary TIL for permanent phase?

and of course disclose the final at closing.
Last edited by nikki_compliance; 05/25/12 05:34 PM.
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