We are refinancing a first and requesting the bank that holds the second to subordinate. We knew this at application.

1. Should we have disclosed the subordination fee charged by the other bank on the GFE? If so, in what block? Is this an origination fee since we are requiring the subordination.

2. If disclosure was required on the GFE and we failed to do so do we need to absorb the charge ourselves?

Any help on this is appreciated.

Since you were aware of the fee it should have been disclosed in Block 3 of the GFE. If it causes you to exceed the 10% tolerance category you will have to make the cure.

Thank you