I am having trouble convincing some loan officers that all settlement charges need to be detailed on the GFE and HUD-I. Many of the times, they have situations where they take an application for a loan and close it the same day. Usually they will just put zero on the GFE and HUD-I or sometimes they will put an amount in the legal/professional fees line. This amount is an estimate of what they think the total closing expenses will be. They say that they won't know exactly what the charges will be until all the abstracts, etc. have been completed and if they put amounts on the disclosures, the bank will be out anything extra that is not disclosed. How do other banks handle the disclosures when the loan is closed the same day? If they disclose an amount in the GFE and HUD-I for a service and the amount turns out to be greater than that, can they go back to the customer and ask for the difference? Someone please HELP!

Read the general instructions is Appendix A of RESPA. They must show ALL fees. How can they go back later to the customer? They close the loan, they are done. If they don't know all things, they shouldn't close the loan until they are ready.

I definitley agree with David. You have to disclose all charges on the GFE and the HUD. If they do not know the exact charge, they are to give their best estimate for the GFE, but the HUD should reflect accurate charges.

How can you close a real estate loan the same day you take the application? Seems to me you'd have problems getting a title commitment, appraisal, etc.

BTW, I like the "handle" you chose. We're all fullofquestions when it comes to the regs.

Are we talking about the prelim or the final? How can they not know the final totals if the loan closes?

Perhaps they are guestimating on the prelim and not changing the numbers on the final?

These are some lazy loan officers who simply don't want to do the "compliance work." They have no excuses for not knowing what services they will require and what the approximate costs will be. And you can't go to closing without a specific HUD-1. The rapid-close feature doesn't make any difference. RESPA is RESPA!