Skip to content
BOL Conferences
Thread Options
#687623 - 02/15/07 05:41 PM servicing released loans and GFE
Janec Offline
Junior Member
Joined: Feb 2006
Posts: 48
On servicing released loans, at the time the GFE is completed, we usually don't know who the servicer will be so we don't know which provider to list for the "tax service fee". We only have 2 providers so would we have to list both on the GFE?

Return to Top
Lending Compliance
#687770 - 02/15/07 06:59 PM Re: servicing released loans and GFE Janec
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Yes because they are required providers. In fact, since there are less than 5, you should be listing them even if you do know which provider will be used. See 3500.7(e);

(ii)Give the name, address, and telephone number of each provider;
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#687882 - 02/15/07 08:01 PM Re: servicing released loans and GFE Dan Persfull
Janec Offline
Junior Member
Joined: Feb 2006
Posts: 48
We list the name, address and phone number of each provider who will actually be used or probably will be used so there is only one of each type of required provider on our GFE, regardless of how many we have of each type. So if we only have 3 appraisers, we should be listing all 3 on the GFE regardless of whether or not we know which one we will actually use?

Return to Top
#687966 - 02/15/07 08:50 PM Re: servicing released loans and GFE Janec
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
According to the above regulatory cite, yes.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#705042 - 03/22/07 04:09 PM Re: servicing released loans and GFE Dan Persfull
Anonymous
Unregistered

I thought servicers weren't covered as they are not settlement providers..

Return to Top
#705054 - 03/22/07 04:17 PM Re: servicing released loans and GFE
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
How is a tax relief servicer, flood zone vendor, credit bureau, etc. not service providers? They provide a service in relation to the loan transaction.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#705242 - 03/22/07 07:14 PM Re: servicing released loans and GFE Dan Persfull
Anonymous
Unregistered

Maybe I'm confused, Dan - in your 7/15/04 post here you said that you don't consider secondary market servicers as required providers, and that's what I took as "servicing released". We are considering the same thing and I was looking to see what others did in regards to passing the tax service fee and transaction/admin fee that the servicer charges us to the borrower.

Return to Top
#705263 - 03/22/07 07:23 PM Re: servicing released loans and GFE
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
It would help if you linked to that almost 3 year old post. I don't have the time or the inclination to go searching for it to see what the context was. It's also very possible that in the almost 3 years from that post I've changed my position or it's not in the same context.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#705272 - 03/22/07 07:27 PM Re: servicing released loans and GFE Dan Persfull
Anonymous
Unregistered

Sorry- i did after the fact - mustn't have caught it before you looked at it Link

Return to Top
#705315 - 03/22/07 08:21 PM Re: servicing released loans and GFE
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Thanks. That is entirely a different scenario I replied to. In that thread they were asking about listing the secondary market purchaser as a required provider and if you noticed I never reentered the thread when the other questions came up.

The tax service fee whether required by you or the secondary market purchaser is a required provider and IMO must be disclosed. BTW, I also disagree with the post where they state the tax service fee on the HUD is shown being paid to the secondary market purchaser. The requirement is to list the entity that ultimately receives the funds for the service.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#705331 - 03/22/07 08:31 PM Re: servicing released loans and GFE Dan Persfull
Anonymous
Unregistered

Thank you! I was just told that they wouldn't know at closing who the servicer would be, so that would put me in the same boat as several other posters here, and nothing solid to reference the tax fee.

Return to Top

Moderator:  Andy_Z