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#1714438 - 06/26/12 08:42 PM Two properties on one GFE?
Arizona Offline
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It is too late in the day to encounter a GFE request that is out of the "box". What would the best way to handle is GFE?
A customer is refinancing their existing residence, and purchasing land with a home (total of 10 acres)on one mortgage. Is it possible to have the 2 address showing on a GFE? The customer plans to sell the refinanced house in the future. They will fix the new purchase and move into it after remodel.

For HMDA would this be a purchase or refinance for improvements?

Any suggestions on the best way to handle this type of situation?

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RESPA
#1714469 - 06/26/12 09:06 PM Re: Two properties on one GFE? Arizona
Truffle Royale Offline

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For HMDA this is a purchase. Purchase ALWAYS trumps HI and Refi.
It sounds like you're just taking the current home as the collateral so that's the only address that shows on the HUD and GFE.

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#1714654 - 06/27/12 02:06 PM Re: Two properties on one GFE? Truffle Royale
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We are taking both homes as collateral on one mortgage.

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#1714671 - 06/27/12 02:24 PM Re: Two properties on one GFE? Arizona
rlcarey Online
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Section G. The street address of the
property being sold should be listed. If there
is no street address, a brief legal description
or other location of the property should be
inserted. In all cases give the zip code of the
property.
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#1714752 - 06/27/12 03:17 PM Re: Two properties on one GFE? Arizona
Truffle Royale Offline

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As I read the post, there is no home being sold at this time, Randy.

For HMDA see GIR D-12 2. "If an institution takes more than one property as security, the institution reports the location of the property being purchased if there is just one."

If there's not enough room to list both on the HUD, for consistency, I think I'd list the address being purchased.

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#1714763 - 06/27/12 03:25 PM Re: Two properties on one GFE? rlcarey
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Would two HUD1's be involved? One for the refinance of the other bank and one for the purchase of the new property? What about comparison charts?

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#1714778 - 06/27/12 03:36 PM Re: Two properties on one GFE? Arizona
#Just Jay Offline
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It is one transaction, thus one set of docs, that should encompass all of the costs associated with the one transaction, as complex as it may be.

If both properties will secure the loan, then just think it through: double the flood cert estimate, double the appraisal estimate, double the title work, etc... It will all work the same way, just with bigger numbers, because there will be more costs associated with obtaining the loan.

As Truff often points out, the GFE and HUD are all about the costs to obtaining the loan, not the home(s).
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#1714791 - 06/27/12 03:44 PM Re: Two properties on one GFE? Truffle Royale
rlcarey Online
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Originally Posted By: Truffle Royale
As I read the post, there is no home being sold at this time, Randy.

For HMDA see GIR D-12 2. "If an institution takes more than one property as security, the institution reports the location of the property being purchased if there is just one."

If there's not enough room to list both on the HUD, for consistency, I think I'd list the address being purchased.


????

A customer is refinancing their existing residence, and purchasing land with a home (total of 10 acres)on one mortgage.

Sounds like there is a home being sold to me.
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#1714806 - 06/27/12 04:00 PM Re: Two properties on one GFE? Arizona
RR Joker Offline
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I'm confused.

Both houses are security and apparently it's not set up as a bridge loan.

The purpose is for purchase.

(h) Home purchase loan means a
loan secured by and made for the purpose
of purchasing a dwelling.


Why would you report the address of the property being 'sold'? Where is that cite, Randy? I'd like to look at it and I'm not sure what Part Section G you are pasting up there.

Thanks!
Last edited by RR Joker; 06/27/12 04:02 PM.
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#1714809 - 06/27/12 04:04 PM Re: Two properties on one GFE? Arizona
rlcarey Online
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OP - "Is it possible to have the 2 address showing on a GFE?"

Sorry, I was addressing the RESPA portion of the question not the HMDA portion of the question. Those are the instructions for completing Box G on the HUD-1. I would assume the same would apply for the property address on the GFE - although not specifically addressed in the instructions.
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#1714911 - 06/27/12 05:54 PM Re: Two properties on one GFE? Arizona
RR Joker Offline
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Thanks, Randy. And as usual, HUD speaks to Home Sale/Purchase loans rather than to atypical loans banks make 'in-house' so-to-speak.

Perhaps a better wording would have been the property used as "collateral". They you could list both, or whatever makes the most sense to the related purpose, I would think.
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#1963095 - 09/19/14 04:13 AM Re: Two properties on one GFE? Arizona
SMQ, CRCM Offline
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Between the lines
What if customer is buying 2 properties, 1 loan; do you list both purchases in Box G of the HUD stmt?

I think Randy hinted at the answer to customer buying 1 home and adding a second property as collateral. Just show the one being purchased on the HUD.
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