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#1367430 - 03/31/10 08:35 PM old GFE, new HUD = OTI reimbursement?
Reed Offline
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Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Our practice with 2009 applications that closed in 2010 was to reissue a new GFE with the same information (including fees) as the original GFE and use the new HUD at closing.

Two questions:

If a LO forgot to reissue the GFE on the new form, would we have a tolerance violation because OTI wasn't disclosed on the old form but was on the HUD? (Note: I'm in WI--sellers pay OTI, so we have to do the 1103 charge, 200 credit, 500 charge thing)

If the GFE was from July 2009, would we have to use the fees disclosed back then or could we issue a new GFE on a new form with new fees? What if the GFE was from late December 2009 and the redisclosed GFE had different fees?

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#1367514 - 03/31/10 09:40 PM Re: old GFE, new HUD = OTI reimbursement? Reed
David Dickinson Offline
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David Dickinson
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Central City, NE
1. No. The tolerance issues only apply to new applications or ones in which you issued a new GFE.

2. Issuing a new GFE does not allow you to change any fees. This is not a changed circumstance. It doesn't matter if it was 7/09 or 12/09.

I have to ask: why are you doing this? If you issued an old GFE, no redisclosure is required. Simply give an "old" SS. Then you don't have to redisclose anything and you don't have play by the new tolerance rules.
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#1367661 - 04/01/10 01:07 PM Re: old GFE, new HUD = OTI reimbursement? David Dickinson
Reed Offline
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Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Like so many things with the new RESPA, there are the rules and then there are the capabilities of your software. We are doing this because it works better with our software...and the doc prep people have been raised in a software environment, I don't trust them to do things manually.

Thanks for the responses. So, using the new forms is really the trigger.

In my second example, if a new GFE was issued for a 2009 application and the fees were different, would there possibly be tolerance issues?

For my first example, is it a big deal that an old GFE was used with a new HUD?

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#1367664 - 04/01/10 01:10 PM Re: old GFE, new HUD = OTI reimbursement? Reed
RR Joker Offline
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The Swamp
Old GFE needs the Old HUD. The new HUD is not designed to be used with the old GFE.
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#1367791 - 04/01/10 02:45 PM Re: old GFE, new HUD = OTI reimbursement? RR Joker
Reed Offline
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Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Right, but with both my examples I'm talking past tense. It happened, so what do I do? Are there cure issues or do I slap a couple wrists and move on?

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#1368163 - 04/01/10 08:11 PM Re: old GFE, new HUD = OTI reimbursement? Reed
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:
if a new GFE was issued for a 2009 application and the fees were different, would there possibly be tolerance issues?

If you issued a new GFE, then you must live by the tolerance requirements.
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David Dickinson
http://www.bankerscompliance.com

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