Is it correct that block 1 cannot change unless a fee directly related to the loan amount increases because the loan amount increased? How do you disclose the fee?

i.e. loan amount increased from $150,000 to $200,000 and the loan origination fee is 2% of the loan amount. $3,000 was initially disclosed in Block 1, where does the increase of $1,000 go?

On a revised GFE done within 3 days of notification of increased request with COC documented.

Does the increased fee go in block 1 or block 2? It seems I heard it should go in block 2, but I can't find anything to support that.

Block 1

On the otherside of the original post ....If you have a changed circumstance can you decrease the orig. charges? Or should we be decreasing it in some other way such as say the DOT screen?

Reason I ask is that I have a software company telling me that my loan failed a RESPA test because the origination charges decreased and that block 1 can not change unless warranted by a changed circumstance.

I don't know what a DOT screen might be...but If the actual charges at closing were less, you can show less on the HUD and Comparison.

Thank you for the response! Sorry DOT meaning Details of Transaction screen. I figured it could go down but could not figure why it was telling me that the loan failed the RESPA test? Why would they say that the orig. charges can not go down if the GFE has been redisclosed?

Charges can always go down at closing.
Having the comparison chart show less in the HUD column is ok, no matter what your software company is telling you to the contrary.
Many of us here subscribe to the notion of not redisclosing for every valid CC but rather only for those that would increase a fee.
If you can live with the charges on the existing GFE, than you don't have to redisclose.

Thank you Truffle! I completely agree with you but I seem to have some investors that want everything to match. UGH Its honestly is making me crazy. I mean really dont we have enough to worry about???!!

"investors" usually means some entry level person who's working off a checklist. Push back. Tell them you know you're right. Ask them to show you the Reg or guideline that requires you to do it their way. Normally, we get immediate funding when I do this.

^^^^pushes REALLY hard!

That was my thought also so I started to do that. Thank you so much for your input!!

The loan amount went down from the amount shown on the original GFE. I understand this is not a changed circumstance and a revised GFE was not issued but the loan information - payment amount - did change. The loan information on page 3 of the HUD does not match the GFE, but it matches the note exactly.

Is this a violation of RESPA? I have read conflicting information (believe it or not!). Can someone please clarify this for me?

Thanks so much!

The loan information on the GFE does not have to match the loan information on the HUD.

Thank you, Dan!

You've got the right answer already but I'm questioning this portion above. There had to be a reason why the loan amount went down and I'm betting it WAS a valid changed circumstance for which you did not HAVE to resdisclose but you could have.