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#1814302 - 05/15/13 01:42 PM New GFE for Rate Change?
CBG Offline
Junior Member
Joined: May 2006
Posts: 44
Sometimes the simplest questons boggle the mind! We are raising the loan rate after issuance of the first GFE. No fees change and the loan term stays the same, just the rate increased. Do we need to redisclose the GFE?
This is not a Fannie or Freddie loan.

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RESPA
#1814328 - 05/15/13 02:13 PM Re: New GFE for Rate Change? CBG
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,400
Rate lock is the one time RESPA says you must redisclose.
If you're locking the rate now, be it higher, lower or the same as on the original GFE, you MUST redisclose.

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#1817275 - 05/24/13 02:48 PM Re: New GFE for Rate Change? CBG
mledesma Offline
New Poster
Joined: Apr 2013
Posts: 16
North East
I have a question about this. about 45 days ago, the loan officer disclosed a GFE with a valid coc early in the morning, including charges on the line 802. Later that day the borrower request lock the rate (with the same terms of the previous disclosed GFE), and the MLO forgot the send that GFE.
If the fees didnt change, only the important dates, How we can cure this?
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#1817295 - 05/24/13 03:02 PM Re: New GFE for Rate Change? CBG
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,400
You can't cure it.
As my post above states, you must redisclose at rate lock, whether it's later in the day that you already sent a redisclosure or not.
You have a technical violation that cannot be cured.

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#1817302 - 05/24/13 03:03 PM Re: New GFE for Rate Change? CBG
mledesma Offline
New Poster
Joined: Apr 2013
Posts: 16
North East
Since the previoud GFE included the dicount fee in line 802, are we allowed to charge it?
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#1817308 - 05/24/13 03:07 PM Re: New GFE for Rate Change? CBG
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,400
Your mistake should not make the bank money that is not a part of what the correct redisclosed GFE would have shown.

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