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#1794681 - 03/14/13 04:05 PM Impact on HUD due to mistake on GFE?
ndbanker Offline
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Joined: Jan 2006
Posts: 68
We need clarification on a situation which occurs once in awhile. The situation occurs when we as lender make a mistake which impacts a fee disclosed on the GFE (such as ordering lien/flood on wrong property). We as lender intend to cover any additional cost as a result of the mistake and not pass along to the borrower. Do these additional fees that we as lender incur as a result of our mistake have to be disclosed on the HUD with an indication they are Lender POC or can we leave them off?

In a related question, if we find out after closing that a fee on the HUD is greater than disclosed (such as a recording fee)and we intend to cover any increased cost, do we need to send a revised HUD showing the cure for a tolerance violation, if there is one?

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#1794696 - 03/14/13 04:33 PM Re: Impact on HUD due to mistake on GFE? ndbanker
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,400
To the first part of your question I say no. A bank error that necessitates reordering something has nothing to do with the borrower. Period.

Why wouldn't you know your exact recording fee by closing? We deal in a dozen different states and keep track of fee changes so our GFEs are properly prepared.
The HUD is suppossed to reflect the costs of getting the loan so I'd say yes, you need to redo the HUD and pay a cure if required. That should incentivise everyone involved to get the correct fee in the first place.

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