Informational fee sheet (NOT a GFE)

Posted By: RebekahL CRCM

Informational fee sheet (NOT a GFE) - 01/28/10 05:28 PM

I've been hearing murmurings of some banks creating a fee sheet that lists common closing fees associated with a real estate loan. I know it would be verbotin to call it anything that sounds like "Good Faith Estimate", but it could be given at the same time as the other disclosures. I'm seeing a growing need for this type of helpful info for the customer. The GFE is all but worthless.

If anyone has developed such a creature, could you PM me? Thanks!
Posted By: jlroberts

Re: Informational fee sheet (NOT a GFE) - 01/29/10 02:19 AM

Basically all we did was create a "Standard Cost Sheet" in excel with the fees listed for a fixed rate purchase or refi and an adjustable rate purchase or refi. We are waiting for approval from our compliance people before we pass it on for the lenders to use.
Posted By: manylayers

Re: Informational fee sheet (NOT a GFE) - 01/29/10 02:06 PM

we did the same thing here...we call ours a "cost estimate sheet"...and it includes items like real estate taxes and other fees that have been left off the new GFE...but will absolutely be needed at the table to close.

We've seen that the new GFE will show closing costs of say 2500.00, but the HUD will include the real estate taxes...and easily increase the closing costs by 1500-2000k. The borrowers have a right to know this upfront and we wouldn't be doing our jobs if we didn't find a way to disclose the accurate information.
Posted By: #Just Jay

Re: Informational fee sheet (NOT a GFE) - 01/29/10 02:17 PM

We have been using a "Proposed Transaction Summary" which includes their actual fees, real estate taxes, seller credits, an actual P&I payment, and what the borrower should reasonably expect to bring to closing.
Posted By: SnuffytheSeal

Re: Informational fee sheet (NOT a GFE) - 01/29/10 02:47 PM

We did the same thing ourselves but I would add some sort of defensive language in that "this is not a good faith estimate, don't even think that's it a good faith estimate, we won't stand by it as a good faith estimate, we'll only send you a good faith estimate when we have a complete application such as a property address.

In HUD's seminar, Vickie Bott said that HUD was okay with this as long as it was clear that it was not a GFE.
Posted By: RR Joker

Re: Informational fee sheet (NOT a GFE) - 01/29/10 02:57 PM

Mine is an "initial fees worksheet" and includes the HUD lines and charges and I also built in a 10% tolerance calculator. The second sheet of the spread is a simple breakdown of totals and I put a disclaimer on it.
Posted By: manylayers

Re: Informational fee sheet (NOT a GFE) - 01/29/10 04:17 PM

Thank you for reminding me about the disclaimer...ours is the standard, this is an informational summary only...you are under no obligation to accept a loan from us...as we are under no obligation to make...

we generally will issue these when a property address is NOT identified...