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#1798070 - 03/25/13 05:34 PM disclosing mortgage with a twist
komply Offline
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Joined: Apr 2008
Posts: 475
NJ
Usually the customer pays points to obtain a lower rate. In this situation, our mortgage area would like the customer to pay a higher rate and give a credit at closing. My question (since I am not familar with this)
1-Can it be done this way
2- if so, how to you disclose it on the rate lock
3- how and where would it be disclosed on the GFE and HUD.

Just seems backwards to me.

Thanks

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Lending Compliance
#1798891 - 03/27/13 06:35 PM Re: disclosing mortgage with a twist komply
komply Offline
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Joined: Apr 2008
Posts: 475
NJ
Would this be reflected on line 802 and the credit in the 200's?

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#1798971 - 03/27/13 08:01 PM Re: disclosing mortgage with a twist komply
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
How you disclose it on the GFE and HUD is up to you. You either show it as a credit for the rate in Block B/802, or you wait until closing and show the credit in the 200's.
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My opinion only. Not legal advice.

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#1799071 - 03/28/13 12:09 AM Re: disclosing mortgage with a twist RR Joker
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
Originally Posted By: RR Joker
How you disclose it on the GFE and HUD is up to you.
Bear in mind, however, that this RESPA-focussed decision could cause TIL problems if you are using an automated document generation system. Most of these software products map GFE/HUD-1 values into the Reg Z calculations according to line item--but the standards for FC and APR determination are not based on GFE/HUD-1 line item descriptions. We discuss this problem fairly often. You can find some of those discussions if you search for "negative points", "negative Finance Charges" and similar terms.
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#1799111 - 03/28/13 01:17 PM Re: disclosing mortgage with a twist komply
komply Offline
Gold Star
Joined: Apr 2008
Posts: 475
NJ
Thanks to both of you very much.

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