Skip to content
BOL Conferences
Thread Options
#1928004 - 05/30/14 02:50 PM GFE and which rate to use for block 2 credit
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Okay, we have switched from correspondent to broker and now we are confused on which rate to use for figuring our block 2 credit. For example
Interest Rate on Loan 3.75%
Base Rate Sheet Rate 2.318%
price adjs 1.875% (which consist of our
comp plan %, loan amount
credit, and program type
charge)
Net .443%

So, for a $200,000 loan, should we show in Block 2 a credit of -4,636 (using the 2.318%), or a credit of -886 (using the .443%)
Last edited by Shopgirl; 05/30/14 03:31 PM.
Return to Top
RESPA
#1928015 - 05/30/14 03:06 PM Re: GFE and which rate to use for block 2 credit Shopgirl
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
If I'm correct, we use the .443 (the net of the credits and charges)

No, after I look at it further, I don't believe this is correct because we are showing our comp plan in Block 1 that we are getting from the lender
So, to offset Block 1 charge,looking like we are charging the client, which we are not, we need this credit also in Block 2, so I'm guessing we go with the Rate Sheet rate of 2.318?????
SOOO confused right now.
Last edited by Shopgirl; 05/30/14 05:08 PM.
Return to Top
#1928031 - 05/30/14 03:29 PM Re: GFE and which rate to use for block 2 credit Shopgirl
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Well, still confused.
If we have a comp plan with the lender then that amount goes in Block 1
This comp plan percentage is also inlcuded in the price adjustments shown above. Do we leave it in there or take it out?

Any help is much appreciated......

Return to Top

Moderator:  QCL