These are general RESPA questions.

1) Do we have to itemize Hazard Insurance on the GFE for a home equity loan when the Hazard Insurance is already in place? It is my understanding this is a requirement on the GFE because we require the Hazard Insurance to be in place before making the loan therefore it is a cost of the loan. YOu only need show the hazard on a purchase. (see the RoundUp) If it's already in place, it is not a cost of the loan.

2) If all the fees are paid by the lender except for the origination fee, do we need to itemize each fee paid by the lender on the GFE? Doing this gives the wrong impression to the customer that they will owe an overabundant amount of fees? The GFE must show all the costs of getting the loan. Whatever credits the lender is giving will show on the HUD. You are allowed to do a cover letter for the GFE that explains that to the borrower. I caution you not to list dollar amounts but rather to state what items you will cover the cost of. If you wish to list a dollar amount, that needs to show in Block 2 and can NEVER be lowered, even if the costs come in lower. You'll find lots of discussion on this topic in this forum. Search 'no cost'

3)If your answer is yes to #2, could we show a credit on the GFE for the fees being paid by the lender? Doing so, would bring the final fee disclosed to reflect the actual amount being paid by the customer. See my answer above

4)Another related-question would be what line would the credit be reflected on the GFE? A credit goes in Block 2 in the 'you will receive a credit of $____. Again, be careful not to overstate this. A credit cannot be reduced to reflect lower costs.

Thank you so much……………