If under the initial GFE, MI was not required but after review of the appraisal it is now needed, we can do a changed circumstance correct? Now the real question is what to do with the underwriters fee for this. Where does this fee go.....my thought is Block 1 but can Block 1 change?

So you are saying that the value of the property increased the LTV above the threshold for which you would require MI to make the loan? Then I would opine that you would make a counter-offer for a lessor amount or a loan at the same level with MI. If the customer wants to pursue the counter-offer, then you have a changed circumstance which would facilitate the issuing of a new GFE. I'll let someone that deals more with MI answer your last question.

Thanks Randy....yes, the value changed the LTV to now require MI. I am weak in the MI department so I just don't have any idea how to handle this one. The loan will be at the same amount but now with MI. So, you are saying to perform a counteroffer for the loan at the same amount but now with MI and therefore if the client accepted, which they will, then we can disclose a new GFE at that point and at that point then the underwriters fee would go in Block 1?

Yes, accept for the placement of the MI underwriter's fee. I will let someone else opine on that as I have not researched as most of my clients do not deal with MI.

Anyone else doing MI? Where are you disclosing an underwriter fee....Block 1?

Can you explain the underwriter fee a little more. Our origination charge includes an underwriting fee and we include it in Block 1. I agree with Randy to counteroffer at a lower amount or the same amount with MI, but we wouldn't change the underwriting fee in this situation. The fee is fixed and, even if additional underwriting work is needed (like in a counteroffer), the borrower won't need to pay extra.