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#1725816 - 08/01/12 02:50 PM no interest rate lock - Important Date #1
Insanity Queen Offline
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If you disclose today's date on the availability of the rate because you don't lock rates, and you disclose the 10 days in the 2nd question, but the loan doesn't close until 20 days after the date expired in question 2, are you required to reissue the GFE prior to closing? I'm not seeing where it is required, but we are being cited for it by auditors.

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RESPA
#1725884 - 08/01/12 03:55 PM Re: no interest rate lock - Important Date #1 Insanity Queen
Truffle Royale Offline

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It sounds like technically you're giving the borrowers an extension which is considered a rate lock which is the only situation that RESPA requires a re-disclosure on. That would be why auditors are citing you for it. Ask them to clarify 'why' for you to confirm.

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#1725926 - 08/01/12 04:44 PM Re: no interest rate lock - Important Date #1 Insanity Queen
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
If you received the intent to proceed on or before the date disclosed in Line 2 there would be absolutely no regulatory requirement to issue a revised GFE unless the consumer exercises a rate lock agreement.

If you received the intent to proceed after the date disclosed in Line 2 then it is your option to issue a "new" GFE.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1725936 - 08/01/12 04:50 PM Re: no interest rate lock - Important Date #1 Insanity Queen
RR Joker Offline
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Agree with Dan.
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#1725956 - 08/01/12 05:16 PM Re: no interest rate lock - Important Date #1 Insanity Queen
kona16 Offline
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Joined: May 2012
Posts: 19
WA
When issuing the "new" GFE after the first one expired (no intent to proceed, was not locked), you would have three business days to reissue a new one correct? Same application.

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#1725969 - 08/01/12 05:30 PM Re: no interest rate lock - Important Date #1 Insanity Queen
RR Joker Offline
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YOu wouldn't issue one unless you had a valid COC or rate lock event.

Once they give intent (late) and something has changed, then yes.
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Say you'll haunt me - Stone Sour

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#1725979 - 08/01/12 05:36 PM Re: no interest rate lock - Important Date #1 Insanity Queen
Kathleen O. Blanchard Offline

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Why do I need a changed circumstance if my GFE expired?
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#1725987 - 08/01/12 05:44 PM Re: no interest rate lock - Important Date #1 Insanity Queen
Dan Persfull Offline
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Bloomington, IN
You don't. Once it has expired the lender is free to issue a new GFE and change any fee or charge they wish. It would be up to the applicant to accept the new fees and charges and then provide their intent to proceed.

Also keep in mind the important date fields have to be completed based on this being a "new" GFE and not a revision of the existing one. IOWs the date in Line 2 must be 10 business days from the date of the new GFE.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1726010 - 08/01/12 06:04 PM Re: no interest rate lock - Important Date #1 Insanity Queen
RR Joker Offline
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The Swamp
To clarify what I meant...is you wouldn't need to give a new one if you were willing to stand by what you layed out the first go-round.

You would need to 'start over' if something had changed and the 3-days from knowledge would be your benchmark.
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#1726017 - 08/01/12 06:13 PM Re: no interest rate lock - Important Date #1 Dan Persfull
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Originally Posted By: Dan Persfull
You don't. Once it has expired the lender is free to issue a new GFE and change any fee or charge they wish. It would be up to the applicant to accept the new fees and charges and then provide their intent to proceed.

Also keep in mind the important date fields have to be completed based on this being a "new" GFE and not a revision of the existing one. IOWs the date in Line 2 must be 10 business days from the date of the new GFE.


Thanks. That was my point...Once the GFE expires yhe bank is no longer ound by it.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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