Good afternoon,

I am receiving a lot of push back regarding Block 2 of the GFE. I am a lender and do not receive broker loans. My FI does not charge any "points" to the borrowers. Management states that all fees are included in their set origination charge. If I am reading RESPA correctly, doesn't that mean that the 1st box of Block 2 should be checked?

The pushback that I am receiving is that the FI should not check any of the boxes. I do not think that is correct. I think the 1st box must be checked when we are not charging or crediting the borrower for their rate. Thoughts?

Thank you-

That is correct. Check box 1 so you don't have to put anything in Block 2...everything can be lumped in Block 1 if you so choose. Since you don't have rate-related charges nor brokers involved, checking the first box makes the most sense.

If you need a regulatory reference, see the Instructions for completing the GFE in Appendix C to Reg X:

Block 2, paragraph 2: For transactions without a mortgage broker, the lender may choose not to separately disclose in this block any credit or charge for the interest rate chosen on the loan; however, if this block does not include any positive or negative figure, the lender must check the first box to indicate that “The credit or charge for the interest rate you have chosen” is included in “Our origination charge” above (see Block 1 instructions above), must insert the interest rate, and must also insert “0” in Block 2. Only one of the boxes may be checked; a credit and charge cannot occur together in the same transaction.

Thank you for the affirmation(s). Pips, I have been referencing this part of RESPA and am being given their own interpretations (which I do not agree with)...

Wow! How in the world can they "interpret" must, must and must into anything but exactly what it states you MUST do?

What ^^^^^ said!!