MLO receives application in mail,and borrower calls him the same day asking for GFE.
MLO emails out GFE.
oops - GFE is incorrect because MLO put in a incorrect $ number, - MLO discovers that the same day.
MLO immediately emails correct GFE.

so can you do that, correct a GFE the same day./

No. Not without a valid COC, which is highly unlikely. Another question, however...are you set up to comply with esign for GFE delivery??

we had the esign covered, so both emails/GFE delivery comply.

so no authority to immediately correct a wrong GFE. If you were filling one out at the office, placed it in the borrowers hands, and immediately said "opps, i forgot a fee, let me have that back!" - you are out of luck.

If it was delivered under E-sign, you don't get second chances.

Not if it was handed to them in the office either.
Delivery = done.

The only time you can change things on a GFE is if there's a valid changed circumstance and then you can only change the items directly affected by that CC.

May I pose a question similar to this topic? A GFE was issued on a refi that included title fees in block 4 and 5 (owner's title). The borrower requested a reduction in the loan amount. As the change in circumstance was being processed, the error regarding block 5 was discovered and the amount moved to block 4 resulting in an increase. Is this correction allowed?

No, a reduction in loan amount would allow you to lower the premium amounts ONLY.
It does not allow you to correct your error in placement from the first GFE.

Thank you!

When the GFE was redisclosed for the lock event they didn't change the Important Dates #4 to "NA".

Should they issue a new GFE with the corrected information (of course...the 3 days since the lock event has expired).

I know if it were fees that were wrong we'd be stuck...but how do we handle dates that are wrong on redisclosed GFE's?

It's a disclosure error - I would just move on.

Are there any consequences to having this error on the GFE disclosure? Does it render the GFE invalid making us refer to the previously disclosed GFE?

Thanks for the help!

I would say no. This is a gotcha type of violation. Figure out how it happened, train and make sure it doesn't happen on a regular basis.

Thanks again!

Remember a bank error is never a valid changed circumstance.
Whether it's a fee or a date, you live with what you delivered.
Document, train and move on.
And I suggest you review the next few prior to delivery to make sure this doesn't happen again.

I saw this post and have a question that has come from our Mortgage Manager. I'm fairly sure what the response will be but wanted to put it out to be sure.

What if you have the GFE have the incorrect application date (lender error)? The loan officer put in the date on the application that matches the credit bureau pull date. However if the credit bureau was pulled a few days after the application and initial GFE were prepared the application appears to be completed AFTER the GFE.

We have an mortgage investor that is now asking for initial GFE's and have discovered where one mortgage officer matched the dates to the credit bureau date rather than the date it was really taken to document for HMDA.

We are out of luck aren't we?

Hard question to answer, D&C. Once you have the elements to be considered an application for RESPA purposes, you have 3 days to issue your GFE. This may or may not correspond with a written application date.

Yes, you're out of luck.
This LO needs to be properly trained.
Additionally, I'd be reviewing all his apps & GFEs pfor a while going forward.

This is going to sound like a really dumb question, but when I was reading the definition of application for RESPA, it says "NO LATER THAN 3 business days..." Would it be an argument that we are within the 3 business days because it was BEFORE the written application date?

We have enough of an application that the GFE was generated and then the credit bureau was pulled and the "written application" was signed by the loan officer as of the date it was pulled?...

I'm just grasping...I know.

The date of application is the date the bank received the application, not when the loan officer decides to sign it.

It sounds like the Mortgage Manager needs to review their application procedures and make the necessary changes to properly document when the bank received the application.

What happens if the initial GFE showed the rate was floating but in reality the Borrower requested the rate to be locked on the same day of application. 1 week prior to closing, we noticed that the GFE was showing as floating. Can we just leave it the way it is (an error on our part) since rate remains when it was floating. We will be out of compliance but can we document that the Processor inadvertently forgot to show on the GFE that it was locked. No fees and rate remain.

Not really much you can do. You have a Section 5 violation for not providing a revised GFE due to a borrower initiated rate lock within 3 business days.

All fees disclosed on the original GFE are the fees you will have to disclose in the GFE column of the comparison chart on page 3 of the HUD.