Broker and Required Provider Disclosure

Posted By: Bank Angler

Broker and Required Provider Disclosure - 09/28/06 04:50 PM

In looking at 3500.7, I see where a broker has to provide a GFE. Does the broker have to give a required provider disclosure?

Also, the bank would have to redisclose affiliated businesses and required providers on loans that it closes that come from a broker right? Would these be closing docs, or disclosed on the HUD-1 or 1A?
Posted By: Kahola

Re: Broker and Required Provider Disclosure - 09/28/06 05:33 PM

For broker loans we re-disclose all intitial disclosures for RESPA and Reg Z.since we are ultimately responsible.
Posted By: ACBbank

Re: Broker and Required Provider Disclosure - 09/28/06 07:02 PM

I have to agree with Pat. Never rely on a broker to perform your due diligence or supply required documentation/disclosures.
Posted By: Lucy Griffin

Re: Broker and Required Provider Disclosure - 10/01/06 10:56 PM

RESPA runs in all directions. Thus, a broker who is requiring a service provider should provide that notice as well as the GFE. But, as the above advice indicates, don't count on it. Most responsible lenders re-disclose just to be safe. You may not know whether a settlement service provider was required by the broker. However, if a service has already been performed and the fee is known, it would be wise to include that on the GFE.