When a lender maintains a list of required providers for a particular service and discloses on the GFE that the lender will require a particular provider from a lender approved list, RESPA requires that the "range of costs" be provided to the borrower in the Good Faith Estimate. (See text below)
I have always interpreted this to mean that the range must appear on the GFE in the buyers column for the particular service. Would it be acceptable to include the range on an addemdum to the GFE instead?
3500.7(e):
(4) If the lender maintains a controlled list of required providers (five or more for each discrete service) or relies on a list maintained by others, and at the time of application the lender has not yet decided which provider will be selected from that list, then the lender may satisfy the requirements of this section if the lender:
(i) Provides the borrower with a written statement that the lender will require a particular provider from a lender-controlled or -approved list; and
(ii) Provides the borrower in the Good Faith Estimate the range of costs for the required provider(s), and provides the name of the specific provider and the actual cost on the HUD-1 or HUD-1A.