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#1962728 - 09/18/14 12:33 AM Changed Circumstance or not?
Princess of Power Offline
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Princess of Power
Joined: Aug 2002
Posts: 406
Napa, CA
We are doing our first purchase $ loan (not because we offer the product, but the Sales Mgr "said" we would). It appears now that the seller is paying the Transfer Tax and crediting the borrower for fees related to making the lot line conforming/legal. Also the Contract Sales Price has decreased, but our loan amount is not changing. Title insurance fees may change as well. Do all these or any of these factors require re-disclosure prior to consummation??

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#1962820 - 09/18/14 02:41 PM Re: Changed Circumstance or not? Princess of Power
Truffle Royale Offline

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Posts: 17,341
Nothing REQUIRES redisclosure ever except a rate lock.

Our rule of thumb here is to only redislose if we need to capture an increase in a fee or if there is a new fee. Of course, you always have to have a valid CC driving the change and you must redisclose within 3 days of learning of that circumstance.

The GFE only has to do with the cost of getting the loan, not the costs of getting the home.

Who is paying what also has no effect on the GFE. The Reg dictates what must be shown on it.

I'm assuming the lot line issue was not known at the time of the first disclosure so it wouldn't have been on the original GFE. Honestly, I don't think it should be a charge to the borrower at all. It should show on the Seller's side of the HUD because they cannot sell a non-conforming parcel.

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#1962843 - 09/18/14 03:32 PM Re: Changed Circumstance or not? Princess of Power
Princess of Power Offline
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Princess of Power
Joined: Aug 2002
Posts: 406
Napa, CA
Your assumption is correct, lot line issue was not known initially (nor the fact that there was a HOUSE on the property). Initial app was for a 1 year land purchase loan to be replaced with a construction only loan. Upon receipt of the appraisal there clearly is a home present and rather than declining as we do not offer this type of product it is "just do it" and don't inconvenience the borrower. So when the OCC arrives I am going to hand them the file along with a blank check request for my finance department and just ask how much do we owe.

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#1962844 - 09/18/14 03:33 PM Re: Changed Circumstance or not? Princess of Power
Princess of Power Offline
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Princess of Power
Joined: Aug 2002
Posts: 406
Napa, CA
Also - thank you for your quick response - always appreciated.

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#1962858 - 09/18/14 03:59 PM Re: Changed Circumstance or not? Princess of Power
Truffle Royale Offline

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gotta love it when the whole deal completely changes and suddenly it's like being on the Star Ship Enterprise where you have to 'Make it so!' (gad, I hope you get that Picard reference! laugh )

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