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#1832303 - 07/11/13 09:34 PM GFE not provided timely
aliasg Offline
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I understand that if the initial GFE is not provided within the business 3 days you must show zeros on the GFE side of the HUD-1 comparison chart. But if you issue a revised GFE at lockin, can the origination and discount fees be added since these are affected by the lock?

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RESPA
#1832308 - 07/11/13 09:48 PM Re: GFE not provided timely aliasg
swiggles Offline
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There was a lot of discussion on this previously, but I thought the consensus was that only if the GFE was not provided at all, would you need to show zeros in the tolerance table.

Regardless, management at my former bank thought that idea was laughable, for example providing the GFE on day four or five and announced they weren't about to give the borrower a free loan because of that. Fortunately, it was extremely rare that a GFE was provided late.
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#1832325 - 07/12/13 12:03 AM Re: GFE not provided timely aliasg
Truffle Royale Offline

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The theory hasn't been tested and proven yet as to what is really allowable and what isn't. I have examiners in house in the immediate future and this question is on my list of questions to pose to them. While I will share what I learn, who's to say if your examiners would read the situation the same as mine.

aliasg, it would be my opinion that you could only show any increase from what the origination and discount fees should have been on the original GFE and what would be on the lock-in GFE, not the entire fee. But that is strictly my OPINION and not based on anything to be found in the FAQ.

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#1832348 - 07/12/13 12:44 PM Re: GFE not provided timely aliasg
RR Joker Offline
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TR is absolutely spot on. However, regarding Paragraph #2, I would want to know from the OP if the GFE was merely late, or not given at all until lock-in. The word 'revised' is used, so I'm thinking the first GFE may have just been slightly outside the 3-day window?
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#1832384 - 07/12/13 01:58 PM Re: GFE not provided timely aliasg
swiggles Offline
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If I were making a policy decision for my bank on this.....which I'm not.....I would differentiate between the scenario of providing the GFE a day or so late and the the scenario of "oooops, forgot to give the GFE...we're ready to close.....let's give one right quick" including discovery at lock that an intial GFE was not provided. Fortunately, at my new bank, 99% of our mortgages (including in-house) are worked by our mortgage department where the procedures are so tight, that failure to provide a timely GFE simply doesn't happen. No offense to loan officers (those that work a variety of different loan products), but those officers are the ones who are likely to make bad mistakes. Mortgage lending is just too complex these days....too many ways to screw it up.
Last edited by swiggles; 07/12/13 02:22 PM. Reason: "differentiate"
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#1832424 - 07/12/13 02:38 PM Re: GFE not provided timely aliasg
aliasg Offline
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GFE was about a month late. GFE at lock was given about a month after that.

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#1832433 - 07/12/13 02:47 PM Re: GFE not provided timely aliasg
#Just Jay Offline
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eewww...
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#1832434 - 07/12/13 02:47 PM Re: GFE not provided timely aliasg
RR Joker Offline
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Then I think I'd go with TR's second statement as well...that's just way too late.
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#1832458 - 07/12/13 03:17 PM Re: GFE not provided timely RR Joker
swiggles Offline
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Originally Posted By: RR Joker
Then I think I'd go with TR's second statement as well...that's just way too late.
I agree. Put in policy that the "free loan" will paid for by the staff member who violated RESPA. Ha ha........just kidding.....guess we all make mistakes.
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#1832460 - 07/12/13 03:20 PM Re: GFE not provided timely aliasg
aliasg Offline
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I agree, we could only collect the difference. But to complicate matters.... there was a credit given for for the interest rate.

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#1832558 - 07/12/13 05:32 PM Re: GFE not provided timely aliasg
Truffle Royale Offline

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This loan is on the bank, imho.
A month is way too far out and doubling down with another month...there's no way you can justify this one.
Do it as a truly no cost loan and use it as a training example.

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#1837262 - 07/29/13 03:30 PM Re: GFE not provided timely aliasg
Arizona Offline
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When the GFE is issued late do you put zero's on actual GFE or estimated charges, then when HUD1 is prepared the zero's are entered into page three comparison chart?

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#1837331 - 07/29/13 05:36 PM Re: GFE not provided timely Arizona
rlcarey Offline
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Galveston, TX
You might want to do a search on "+gfe +late +delivery".

That horse quit breathing a while ago.
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#1838272 - 07/31/13 08:24 PM Re: GFE not provided timely aliasg
Lonzo Offline
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Boca Raton, Florida
Our policy for initial GFE sent after day 3 on the initial disclosure is sending the loan for denial. Once out of compliance it must be sent for denial because the loan can not ever be compliant.
Regarding a revised GFE not sent on-time, we make the processor or mortgage loan originator send the revised GFE once made known to us but they cannot changes the fees.
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#1838275 - 07/31/13 08:29 PM Re: GFE not provided timely aliasg
RR Joker Offline
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That is no reason to deny a loan. What do you put on the denial? We screwed up so too bad for you? crazy

Regarding the second process...what's the point? If no fees changed there is no reason to send a revision of the same facts. Also, the only time you are mandated to revise is for a rate-lock...maybe I'm not following your logic or something's missing.
Last edited by RR Joker; 07/31/13 08:29 PM.
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#1838276 - 07/31/13 08:30 PM Re: GFE not provided timely aliasg
Truffle Royale Offline

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How do you justify denying a loan to a borrower because of the bank's error? Seriously???

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