On construction loans, the builder provides builder's risk insurance. Does this have to be disclosed on the GFE or HUD?

If it is a consumer loan, then yes. The premium tied to the secured "under-construction" property would need to be dislcosure on the GFE and HUD-1/a as a POC item.

We have recently started closing construction to perm loans. The documents are prepared in a centralized location and when the loan officer is contacted regarding the insurance to be disclosed on the GFE and HUD they state that the borrower will not obtain insurance until the construction phase has started.

How should we disclose an amount on the HUD if they do not have insurance yet?

Thanks

You should be able to call the agent to find out what the premium will be. FYI, we will not close the loan until we have proof of insurance, we will not allow the borrower to wait until construction begins. The policy may have an affective date in the future, but we still require the purchase before loan closing.