This document provides responses to frequently asked questions about the Good Faith Estimate (GFE) form required under the Real Estate Settlement Procedures Act (RESPA) reform. Key points addressed include: yield spread premiums must be disclosed in Block 1 on page 2 of the GFE; over-disclosing fees is allowed but fees cannot be higher than quoted; an application under RESPA includes name, address, income, estimated property value, social security number, and loan amount; and the originator is bound by estimates on the GFE unless there is a changed circumstance for the borrower.
The document discusses various loss mitigation options for homeowners who are facing foreclosure or default on their mortgage, including reinstatement, repayment plans, forbearance agreements, loan modifications, short sales, and deed-in-lieu options. It provides details on each option, including eligibility requirements and examples. The key steps for agents working with homeowners and lenders on these options are to be persistent in contacting the lender, provide all required documentation, and have patience as it can take several weeks for the lender to make a decision.
The document provides answers to questions about the Homeowner Affordability and Stability Plan, which aims to help homeowners refinance or modify their mortgages to more affordable terms. It addresses questions for borrowers who are current or at risk of foreclosure on their mortgages regarding eligibility, refinancing or modifying terms, costs, the application process, and what to do if facing foreclosure.
The document discusses three options for homeowners with mortgages that are up for renewal: renewing with the same lender, renegotiating with a different lender, or refinancing. Renewing is a simple process but may not get the best rate, renegotiating requires requalification but can get a better rate, and refinancing allows accessing home equity but has some costs. The mortgage broker wants to help homeowners make an educated choice about the best option.
This document provides a Good Faith Estimate (GFE) of settlement charges and loan terms for a $294,566 loan with a 30-year term and 5% interest rate. The total estimated settlement charges are $13,501.44, including adjusted origination charges of $3,750 and charges for other settlement services totaling $9,751.44. The monthly principal and interest payment would be $1,713.98, not including amounts for taxes and insurance held in an escrow account. The interest rate can increase over the life of the loan but the loan does not have prepayment penalties or balloon payments.
This document provides a line-by-line analysis of how to properly fill out the Good Faith Estimate (GFE) form. It details the information that must be included in each block and section of the 3-page GFE form, including the applicant and loan details, estimated settlement charges, fees, interest rates, and other key loan terms. Tolerances for certain estimated fees are also outlined. The document is intended to guide loan originators on correctly completing the standardized GFE form for applicants as required.
This document provides an overview and summary of a training on Chenoa Fund programs offered by CBC Mortgage Agency. The training covers conventional and FHA loan programs, how to calculate AMI, the loan registration process, underwriting, locking loans, securing down payment assistance approvals, and purchasing and servicing loans. It also includes a comparison matrix of FHA second mortgage products, including the Rate Advantage, DPA Edge Repayable Second, and DPA Edge Soft Second programs.
The document discusses various loss mitigation options for homeowners who are facing foreclosure or default on their mortgage, including reinstatement, repayment plans, forbearance agreements, loan modifications, short sales, and deed-in-lieu options. It provides details on each option, including eligibility requirements and examples. The key steps for agents working with homeowners and lenders on these options are to be persistent in contacting the lender, provide all required documentation, and have patience as it can take several weeks for the lender to make a decision.
The document provides answers to questions about the Homeowner Affordability and Stability Plan, which aims to help homeowners refinance or modify their mortgages to more affordable terms. It addresses questions for borrowers who are current or at risk of foreclosure on their mortgages regarding eligibility, refinancing or modifying terms, costs, the application process, and what to do if facing foreclosure.
The document discusses three options for homeowners with mortgages that are up for renewal: renewing with the same lender, renegotiating with a different lender, or refinancing. Renewing is a simple process but may not get the best rate, renegotiating requires requalification but can get a better rate, and refinancing allows accessing home equity but has some costs. The mortgage broker wants to help homeowners make an educated choice about the best option.
This document provides a Good Faith Estimate (GFE) of settlement charges and loan terms for a $294,566 loan with a 30-year term and 5% interest rate. The total estimated settlement charges are $13,501.44, including adjusted origination charges of $3,750 and charges for other settlement services totaling $9,751.44. The monthly principal and interest payment would be $1,713.98, not including amounts for taxes and insurance held in an escrow account. The interest rate can increase over the life of the loan but the loan does not have prepayment penalties or balloon payments.
This document provides a line-by-line analysis of how to properly fill out the Good Faith Estimate (GFE) form. It details the information that must be included in each block and section of the 3-page GFE form, including the applicant and loan details, estimated settlement charges, fees, interest rates, and other key loan terms. Tolerances for certain estimated fees are also outlined. The document is intended to guide loan originators on correctly completing the standardized GFE form for applicants as required.
This document provides an overview and summary of a training on Chenoa Fund programs offered by CBC Mortgage Agency. The training covers conventional and FHA loan programs, how to calculate AMI, the loan registration process, underwriting, locking loans, securing down payment assistance approvals, and purchasing and servicing loans. It also includes a comparison matrix of FHA second mortgage products, including the Rate Advantage, DPA Edge Repayable Second, and DPA Edge Soft Second programs.
This document provides an overview and summary of Chenoa Fund programs, including:
1. Chenoa Fund offers down payment assistance programs in all states except New York, including Rate Advantage (FHA), DPA Edge: Repayable Second (FHA), and DPA Edge: Soft Second (FHA).
2. The programs provide 3.5% assistance for down payments and closing costs, with various terms for repayment. The first mortgage must be sold to CBC Mortgage Agency.
3. Eligibility requirements include minimum credit scores and debt-to-income ratios. The document reviews guidelines for each program and requirements for borrowers with credit scores between 620-639.
This document provides information about the foreclosure process, homeowner options to avoid foreclosure like loan modifications and short sales, and the benefits and process of pursuing a short sale. It outlines the typical short sale timeline of 45-90 days and the documentation required for a short sale package. It also summarizes programs like HAMP and HAFA that provide guidelines and incentives for loan modifications and short sales. Special protections for active military members in foreclosure are mentioned as well.
This slide tells important cases about the contract and offer which will make user easily to understand the concept of offers. how a offers make good impact , how it accepted
Cayman Grand Harbour is one of Cayman’s most successful multi-use residential, retail, office, and entertainment master-planned communities developed on 190 ± acres in a prime location on the Eastern side of George Town. A Prime Development Site zoned Residential and Marine Commercial. Visit our website for more detail of the Cayman Grand Harbour - Residential and commercial real estate property memorandum and information at: http://www.irgcayman.com
Short overview of the property:
Block 22E Parcel 447 (part thereof)
Grand Cayman, Cayman Islands
Section: Prospect, Block: 22E Parcel: 447
Grand Cayman, Cayman Islands
The document discusses the key elements of consideration according to Indian contract law:
1) Consideration must move at the desire of the promisor. It must be done at their request.
2) Consideration can move from either the promisee or any other person, including a stranger to the contract.
3) Consideration can be past (before the promise), present (at the time of promise), or future (after the promise).
This document provides information about a sealed bid sale for a prime development site in Cayman Grand Harbour, Cayman Islands. The 8.28 acre parcel is zoned for neighborhood commercial use and suitable for mixed retail/commercial/residential development up to three stories. The property benefits from road frontage, proximity to existing developments, and canal access. Interested bidders are instructed to submit financial details and an offer price by the specified deadline to be considered for purchase of the site.
The document defines key terms related to contracts under the Indian Contract Act such as proposal, promise, promisor, promisee, consideration, agreement, void agreement, contract, and voidable contract. It then outlines the essential elements for a valid contract including offer and acceptance, consideration, capacity of parties, consent, legality of object, writing and registration, certainty and possibility of performance. Finally, it discusses different types of contracts, agreements, quasi-contracts and key principles of offer, acceptance and consideration.
This document defines consideration and outlines its essential rules and types under contract law. It states that consideration is something of value that each party provides to make a contract enforceable. The rules are that consideration must move at the desire of the promisor, can come from the promisor or third party, and can be past, present or future. There are also exceptions to the general rule that an agreement without consideration is void, such as agreements on account of natural love/affection or to compensate for past voluntary services. The types of consideration are past (valid in India but not England), present, and future consideration.
HUD homes are foreclosed homes that are owned and sold by the Department of Housing and Urban Development (HUD). Licensed real estate brokers can list, show, and submit offers on HUD homes on behalf of buyers after registering with HUD. HUD homes are sold through an online bidding process and various programs provide priority to certain buyers like owner-occupants, non-profits, and first responders. FHA loans are typically available to finance the purchase of HUD homes.
This document provides guidance for real estate brokers on selling homes owned by the Department of Housing and Urban Development (HUD). It outlines the process for brokers to register with HUD, access property listings on HUDHomestore.com, place bids on behalf of buyers, submit sales contracts, and handle other aspects of the transaction such as inspections, extensions, and closing. It also describes HUD's programs that provide discounts or special terms for certain buyer types such as first responders or non-profits.
This document provides an overview of the home buying process, including determining affordability and readiness, shopping for a home and loan, and the closing process. Key points covered include:
- Factors to consider in determining if you are ready to buy a home and what price range is affordable based on income and expenses.
- Roles of real estate agents, attorneys, and lenders in the home buying process.
- Important terms to consider in a sales agreement such as the mortgage clause, settlement costs, and inspections.
- Steps for shopping for a loan including different loan types and programs, the Good Faith Estimate, and settlement services.
- Details on closing including the HUD-
This document provides an overview and summary of a training on Chenoa Fund programs offered by CBC Mortgage Agency. The training covers all aspects of the programs from initial registration to final documents. It includes summaries of the Rate Advantage, DPA Edge Repayable Second, and DPA Edge Soft Second FHA loan programs. Key details like qualifying criteria, terms, and documentation requirements are highlighted for each program. The document also reviews topics like underwriting, the funding obligation letter, homebuyer education, and undisclosed debt monitoring.
The document discusses key issues related to a customer filing for Chapter 11 bankruptcy and selling its business as a going concern. It addresses common questions from creditors regarding whether to continue doing business, the likelihood of getting paid in full, negotiations with the potential new buyer, the role of the unsecured creditors committee, and the risk of payments being deemed preferential. While continuing normal credit terms or agreeing to price decreases may help facilitate a going concern sale, there is no guarantee creditors will be paid in full or that the original buyer will be the ultimate buyer. Sitting on the creditors committee provides opportunities to obtain information and potentially influence the process. Not all past payments need to be returned as preferential depending on the specific circumstances.
The document provides an overview of the Home Affordable Foreclosure Alternatives (HAFA) program, which aims to standardize the short sale process. It outlines key terms, eligibility requirements, and steps in the HAFA short sale process. This includes borrower qualification, determining if a short sale or deed-in-lieu is offered, signing a short sale agreement, listing and marketing the property, submitting a purchase agreement, and satisfying liens. The document notes some challenges in implementation, such as lenders meeting timelines and subordinate lien holders accepting payment amounts.
This document provides information and standard terms for a Contract of Purchase and Sale for real estate. It begins with copyright information for the form.
Section 1 provides 3 sentences on recommended procedures for completing the sale to ensure the seller receives funds on the agreed upon completion date. It advises the buyer to pay funds and sign documents at least 2 days before completion, and the seller to return signed documents by the morning before completion.
Section 2 notes the real estate brokerage must hold deposits from the transaction as a stakeholder according to the Real Estate Services Act, and cannot release the funds without written agreement from both parties.
The document discusses the Indian Contract Act of 1872 and provides definitions and classifications of contracts. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer, acceptance, lawful consideration and capacity. Contracts are classified based on their formation (express, implied, quasi), performance (executed, executory, partly executed) and enforceability (valid, void, voidable, illegal). Quasi-contracts are also discussed, which create obligations by operation of law rather than agreement. Various types of quasi-contracts are explained through examples.
Ashiana Mulberry. Sector-2 Sohna Gurgaon .size-2Bhk-1000 Sq. Ft @4413 per Sq....AADHAR HOMES
This document is an Expression of Interest (EOI) submitted by an applicant to Ashiana Dwellings Private Limited for a residential unit in an upcoming project in Sohna, Haryana. The applicant is providing personal details and payment of a registration amount via cheque. The EOI notes that it is not an allotment or agreement but a priority for selection. Key conditions include the unit area being tentative, additional charges being payable, and cancellation fees if the applicant withdraws before allotment.
The document discusses key aspects of contract law in India according to the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. There are two essential elements to a valid contract: 1) an agreement between two parties, and 2) the agreement's enforceability under law. For an agreement to become an enforceable contract, it must meet additional requirements such as offer and acceptance, lawful consideration, capacity of the parties to contract, free consent, and lawful object.
This document provides an overview of a webinar presented by Stearns Lending on RESPA compliance for brokers. It discusses the changes to RESPA regulations over time and common errors seen in RESPA documentation. The webinar agenda covers GFE requirements, changed circumstances, pre-approvals, and common closing errors. Brokers are encouraged to use tools like the AutoGFE program and changed circumstance form to help ensure accurate RESPA documentation.
The document discusses new regulations under RESPA and the Good Faith Estimate (GFE) that aim to help borrowers shop for loans and protect them from unexpected fees. Key points include:
1) Lenders must provide a GFE within 3 days of receiving a loan application that gives fixed estimates for settlement costs.
2) The new GFE and HUD-1 form have improved tolerances to hold lenders accountable, with most fees unable to increase at closing.
3) Additional protections for borrowers were added through the Housing and Economic Recovery Act (HERA) around loan disclosures and timing of closings.
This document provides an overview and summary of Chenoa Fund programs, including:
1. Chenoa Fund offers down payment assistance programs in all states except New York, including Rate Advantage (FHA), DPA Edge: Repayable Second (FHA), and DPA Edge: Soft Second (FHA).
2. The programs provide 3.5% assistance for down payments and closing costs, with various terms for repayment. The first mortgage must be sold to CBC Mortgage Agency.
3. Eligibility requirements include minimum credit scores and debt-to-income ratios. The document reviews guidelines for each program and requirements for borrowers with credit scores between 620-639.
This document provides information about the foreclosure process, homeowner options to avoid foreclosure like loan modifications and short sales, and the benefits and process of pursuing a short sale. It outlines the typical short sale timeline of 45-90 days and the documentation required for a short sale package. It also summarizes programs like HAMP and HAFA that provide guidelines and incentives for loan modifications and short sales. Special protections for active military members in foreclosure are mentioned as well.
This slide tells important cases about the contract and offer which will make user easily to understand the concept of offers. how a offers make good impact , how it accepted
Cayman Grand Harbour is one of Cayman’s most successful multi-use residential, retail, office, and entertainment master-planned communities developed on 190 ± acres in a prime location on the Eastern side of George Town. A Prime Development Site zoned Residential and Marine Commercial. Visit our website for more detail of the Cayman Grand Harbour - Residential and commercial real estate property memorandum and information at: http://www.irgcayman.com
Short overview of the property:
Block 22E Parcel 447 (part thereof)
Grand Cayman, Cayman Islands
Section: Prospect, Block: 22E Parcel: 447
Grand Cayman, Cayman Islands
The document discusses the key elements of consideration according to Indian contract law:
1) Consideration must move at the desire of the promisor. It must be done at their request.
2) Consideration can move from either the promisee or any other person, including a stranger to the contract.
3) Consideration can be past (before the promise), present (at the time of promise), or future (after the promise).
This document provides information about a sealed bid sale for a prime development site in Cayman Grand Harbour, Cayman Islands. The 8.28 acre parcel is zoned for neighborhood commercial use and suitable for mixed retail/commercial/residential development up to three stories. The property benefits from road frontage, proximity to existing developments, and canal access. Interested bidders are instructed to submit financial details and an offer price by the specified deadline to be considered for purchase of the site.
The document defines key terms related to contracts under the Indian Contract Act such as proposal, promise, promisor, promisee, consideration, agreement, void agreement, contract, and voidable contract. It then outlines the essential elements for a valid contract including offer and acceptance, consideration, capacity of parties, consent, legality of object, writing and registration, certainty and possibility of performance. Finally, it discusses different types of contracts, agreements, quasi-contracts and key principles of offer, acceptance and consideration.
This document defines consideration and outlines its essential rules and types under contract law. It states that consideration is something of value that each party provides to make a contract enforceable. The rules are that consideration must move at the desire of the promisor, can come from the promisor or third party, and can be past, present or future. There are also exceptions to the general rule that an agreement without consideration is void, such as agreements on account of natural love/affection or to compensate for past voluntary services. The types of consideration are past (valid in India but not England), present, and future consideration.
HUD homes are foreclosed homes that are owned and sold by the Department of Housing and Urban Development (HUD). Licensed real estate brokers can list, show, and submit offers on HUD homes on behalf of buyers after registering with HUD. HUD homes are sold through an online bidding process and various programs provide priority to certain buyers like owner-occupants, non-profits, and first responders. FHA loans are typically available to finance the purchase of HUD homes.
This document provides guidance for real estate brokers on selling homes owned by the Department of Housing and Urban Development (HUD). It outlines the process for brokers to register with HUD, access property listings on HUDHomestore.com, place bids on behalf of buyers, submit sales contracts, and handle other aspects of the transaction such as inspections, extensions, and closing. It also describes HUD's programs that provide discounts or special terms for certain buyer types such as first responders or non-profits.
This document provides an overview of the home buying process, including determining affordability and readiness, shopping for a home and loan, and the closing process. Key points covered include:
- Factors to consider in determining if you are ready to buy a home and what price range is affordable based on income and expenses.
- Roles of real estate agents, attorneys, and lenders in the home buying process.
- Important terms to consider in a sales agreement such as the mortgage clause, settlement costs, and inspections.
- Steps for shopping for a loan including different loan types and programs, the Good Faith Estimate, and settlement services.
- Details on closing including the HUD-
This document provides an overview and summary of a training on Chenoa Fund programs offered by CBC Mortgage Agency. The training covers all aspects of the programs from initial registration to final documents. It includes summaries of the Rate Advantage, DPA Edge Repayable Second, and DPA Edge Soft Second FHA loan programs. Key details like qualifying criteria, terms, and documentation requirements are highlighted for each program. The document also reviews topics like underwriting, the funding obligation letter, homebuyer education, and undisclosed debt monitoring.
The document discusses key issues related to a customer filing for Chapter 11 bankruptcy and selling its business as a going concern. It addresses common questions from creditors regarding whether to continue doing business, the likelihood of getting paid in full, negotiations with the potential new buyer, the role of the unsecured creditors committee, and the risk of payments being deemed preferential. While continuing normal credit terms or agreeing to price decreases may help facilitate a going concern sale, there is no guarantee creditors will be paid in full or that the original buyer will be the ultimate buyer. Sitting on the creditors committee provides opportunities to obtain information and potentially influence the process. Not all past payments need to be returned as preferential depending on the specific circumstances.
The document provides an overview of the Home Affordable Foreclosure Alternatives (HAFA) program, which aims to standardize the short sale process. It outlines key terms, eligibility requirements, and steps in the HAFA short sale process. This includes borrower qualification, determining if a short sale or deed-in-lieu is offered, signing a short sale agreement, listing and marketing the property, submitting a purchase agreement, and satisfying liens. The document notes some challenges in implementation, such as lenders meeting timelines and subordinate lien holders accepting payment amounts.
This document provides information and standard terms for a Contract of Purchase and Sale for real estate. It begins with copyright information for the form.
Section 1 provides 3 sentences on recommended procedures for completing the sale to ensure the seller receives funds on the agreed upon completion date. It advises the buyer to pay funds and sign documents at least 2 days before completion, and the seller to return signed documents by the morning before completion.
Section 2 notes the real estate brokerage must hold deposits from the transaction as a stakeholder according to the Real Estate Services Act, and cannot release the funds without written agreement from both parties.
The document discusses the Indian Contract Act of 1872 and provides definitions and classifications of contracts. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer, acceptance, lawful consideration and capacity. Contracts are classified based on their formation (express, implied, quasi), performance (executed, executory, partly executed) and enforceability (valid, void, voidable, illegal). Quasi-contracts are also discussed, which create obligations by operation of law rather than agreement. Various types of quasi-contracts are explained through examples.
Ashiana Mulberry. Sector-2 Sohna Gurgaon .size-2Bhk-1000 Sq. Ft @4413 per Sq....AADHAR HOMES
This document is an Expression of Interest (EOI) submitted by an applicant to Ashiana Dwellings Private Limited for a residential unit in an upcoming project in Sohna, Haryana. The applicant is providing personal details and payment of a registration amount via cheque. The EOI notes that it is not an allotment or agreement but a priority for selection. Key conditions include the unit area being tentative, additional charges being payable, and cancellation fees if the applicant withdraws before allotment.
The document discusses key aspects of contract law in India according to the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. There are two essential elements to a valid contract: 1) an agreement between two parties, and 2) the agreement's enforceability under law. For an agreement to become an enforceable contract, it must meet additional requirements such as offer and acceptance, lawful consideration, capacity of the parties to contract, free consent, and lawful object.
This document provides an overview of a webinar presented by Stearns Lending on RESPA compliance for brokers. It discusses the changes to RESPA regulations over time and common errors seen in RESPA documentation. The webinar agenda covers GFE requirements, changed circumstances, pre-approvals, and common closing errors. Brokers are encouraged to use tools like the AutoGFE program and changed circumstance form to help ensure accurate RESPA documentation.
The document discusses new regulations under RESPA and the Good Faith Estimate (GFE) that aim to help borrowers shop for loans and protect them from unexpected fees. Key points include:
1) Lenders must provide a GFE within 3 days of receiving a loan application that gives fixed estimates for settlement costs.
2) The new GFE and HUD-1 form have improved tolerances to hold lenders accountable, with most fees unable to increase at closing.
3) Additional protections for borrowers were added through the Housing and Economic Recovery Act (HERA) around loan disclosures and timing of closings.
The document discusses the impacts of recent mortgage lending reforms on loan officers and borrowers. It summarizes that since 2009, three phases of reform - including changes to appraisal practices, disclosure requirements, and the Good Faith Estimate - have added 9 new forms to the loan process. This has increased compliance complexity, costs, and processing times. Borrowers are confused by the excessive information and often uninterested in details like fees paid by sellers. The reforms have unintentionally grown an industry around compliance at the expense of transparency and efficiency in lending.
The document discusses reforms to the Real Estate Settlement Procedures Act (RESPA) that aim to provide more transparency to home buyers. The Good Faith Estimate (GFE) and HUD-1 settlement statement were revised to better inform borrowers about loan terms and prevent unexpected fee increases. Key changes include making GFEs binding documents, adding fee tolerance limits, and requiring refunds if certain fees exceed tolerances. A third page was also added to the HUD-1 to compare final fees to those in the GFE. The reforms take effect for applications starting January 1st and are designed to increase competition and lower costs through an improved disclosure process.
The document provides an overview of bankruptcy law and procedures, including key concepts, current trends, famous filers, differences between Chapter 7 and Chapter 13 bankruptcies, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), reaffirmation agreements, property of the estate, adequate protection, and the automatic stay. It also discusses strategies for creditors, such as filing proofs of claim, dealing with ride-throughs, multiple filings, and setoffs.
This Good Faith Estimate provides borrowers with estimates of settlement charges and loan terms for a potential loan. It summarizes estimated settlement charges, loan details such as initial loan amount and interest rate, important dates, and whether the loan has features like a prepayment penalty or balloon payment. It explains that actual charges on the HUD-1 form at settlement may differ if the borrower chooses their own service providers rather than those selected or identified by the lender.
The document summarizes the key differences between mortgage disclosure processes before and after the TILA-RESPA Integrated Disclosure (TRID) rule went into effect on October 3, 2015. Some of the main changes include a single Loan Estimate form replacing multiple earlier forms, more transparent disclosure of closing costs and cash needed to close earlier in the process, and lenders taking responsibility for accuracy of disclosures instead of settlement agents. The new rules aim to provide borrowers clearer and more consistent information throughout the mortgage process.
Advocate for Fair Lending - Save your home (english)Mark Shoemaker
Advocate for Fair Lending is a organization dedicated to helping you keep your dream alive of owning your own home. We are in the business of helping home owners that are trapped in their mortgages. We can reduce your payments, interest and principal balance without refinancing your home.
The mortgage modification mediation program in the Northern District of Florida has had positive results for debtor clients who previously failed to get modifications in state court. The program follows procedures similar to those successfully used in the Orlando division. While the current procedures are working well, the program could be improved by exploring uniform statewide procedures in some areas. Communication between debtors and lenders has improved due to the program's strict timelines for lenders, leading to higher rates of modification approval. However, some issues remain such as lenders not always timely designating representatives and questions around lien priority after loan modifications.
The document provides a quick reference to the TRID (TILA-RESPA Integrated Disclosure) rule for mortgage disclosures in the United States. It outlines that TRID applies to consumer purpose loans secured by real estate. It discusses the timing requirements for providing the Loan Estimate and Closing Disclosure to borrowers. It also defines what constitutes a "valid change circumstance" that allows lenders to issue revised disclosures outside of the standard timing rules. Finally, it reviews the different tolerance levels that apply to estimating settlement costs, taxes, and other fees on the Closing Disclosure form compared to what was previously disclosed on the Loan Estimate.
This document provides an agenda and overview for an 8-hour continuing education course for loan originators. The course covers federal lending laws including the TILA/RESPA Integrated Disclosure Rule (TRID) which implements the new Loan Estimate and Closing Disclosure forms. It discusses the requirements for providing the Loan Estimate within 3 days of application, the good faith tolerances for closing costs, requirements for revised disclosures, and timing for delivering the Closing Disclosure. The course also addresses additional federal laws on pre-disclosure fees, consumer intent to proceed, and exceptions to the new TRID rules.
The document provides information about the TRID (TILA RESPA Integrated Disclosure) rule which combines mortgage disclosure forms to help borrowers better understand loan fees, terms, and closing costs. Under the new rule, borrowers will receive a Loan Estimate form within 3 days of applying which estimates closing costs, and a Closing Disclosure form 3 days before closing which provides final costs. The timeline outlines the typical process from application to closing.
The document provides an overview of new regulations for real estate closings under RESPA that take effect in 2010, including a new Good Faith Estimate (GFE) and HUD-1 Settlement Statement. Key changes include bundling origination fees on the GFE, increased tolerances for estimated closing costs, and requiring lenders to provide more details to settlement agents to complete the HUD-1. The document also discusses resources for understanding the new rules and how TitleHub can help real estate professionals with electronic closings and legal/marketing advice.
The document discusses the services provided by various divisions of Citi Home Solutions Inc. including loan modification, debt settlement, and credit repair. It explains that these divisions operate as separate entities due to regulatory requirements. The document then provides information on qualifying clients for loan modifications and negotiating modifications through an attorney to help homeowners save their homes.
The document compares the current and future state of regulations regarding mortgage loan disclosures and closing processes. Some key changes in the future state include expanding the scope of covered transactions, requiring a single Closing Disclosure form to replace the HUD-1 and TILA forms, more restrictions on fee increases at closing, additional triggers requiring revised initial disclosures, and changes to timing requirements for delivery of disclosures to the borrower. The future state aims to increase consumer protections and align regulations with the new TILA-RESPA integrated disclosures.
This document discusses factoring, which is a financial transaction where a business sells its accounts receivable to a third party called a factor in exchange for immediate cash. There are several types of factoring described, including domestic, international, recourse, non-recourse, maturity, and invoice factoring. The key differences between factoring and a bank loan are also outlined. A case study is then provided showing how a company used export factoring and purchase order financing to fulfill several contracts requiring upfront capital.
This document provides information to guide home buyers through the home buying process. It discusses choosing a real estate agent, the step-by-step process of making an offer and purchasing a home, choosing a lender, the loan process, points, how underwriters evaluate loans, tips for completing a loan application, estimating how much home buyers can afford, estimating mortgage payments, escrow, title insurance, and other related topics. The guide aims to inform home buyers of the various considerations and stages involved in the home buying journey.
Note please read all the instruction carefully before beginning.docxkanepbyrne80830
Note: please read all the instruction carefully before beginning the assignment.
For this milestone, you will review Case Study One and compose a short report, applying your legal knowledge and understanding of the types of business organizations. Case Study One focuses on the legal system, criminal law, and ethics.
For additional details, please refer to the Milestone One Guidelines and Rubric document and the Milestone One Template in the Assignment Guidelines and Rubrics section of the course.
Note: the pages that you would need to read and understand in order to be able to do this assignment is listed below on the case study one
.
LEARNING OBJECTIVES
After reading this chapter, you will be able to answer the following questions:
1
What is consideration?
2
What are the rules regarding consideration?
3
What is promissory estoppel, and when can it be used?
4
What is an illusory promise?
5
How are the UCC rules regarding consideration different from the common law rules regarding consideration?
6
What is the difference between a liquidated debt and an unliquidated debt?
7
What is an accord and satisfaction?
CASE OPENER
Upper Deck—Contract Liability or Gift?
In 1988 the Upper Deck Company was a company with an idea for a better baseball card: one that had a hologram on it. By the 1990s the firm was a major corporation worth at least a quarter of a billion dollars.
In 1988, however, its outlook hadn't been so bright. Upper Deck lacked the funds for a $100,000 deposit it needed to buy some special paper by August 1. Without that deposit its contract with the Major League Baseball Players Association would have been jeopardized.
Upper Deck's corporate attorney, Anthony Passante, Jr., loaned the company the money. That evening, the directors of the company accepted the loan and, in gratitude, agreed to give Passante 3 percent of the firm's stock. Passante never sought to collect the stock, and later the company reneged on its promise. Passante sued for breach of oral contract.
1
p. 343
1.
If you were on the jury, how would you decide the case? Was the offer of 3 percent of the firm's stock legal consideration for the loan? Or was it a mere gift?
2.
Does Upper Deck have a moral obligation to give Passante the stock? If so, is this obligation legally enforceable?
The Wrap-Up at the end of the chapter will answer these questions.
at is Consideration?
Consideration
The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.
is required in every contract. It is what a person will receive in return for performing a contract obligation. Suppose Dan agrees to purchase Marty's car for $1,000. Dan's payment of $1,000 is the consideration Marty will receive for the car. Title to and possession of the car are the consideration Dan will receive in exchange. Consideration can be anything, as long as it is the product of a bargained-for exchange. In a business context it is often (.
This document summarizes challenges facing potential homebuyers today, including low inventory, rising home prices and interest rates, wage stagnation, and difficulties saving for a down payment. It notes that inventory remains low while average days on market are increasing. Home prices continue rising faster than wages in many areas, and interest rates are forecast to continue climbing in 2019. Saving for a down payment is challenging due to high rents and student loan debt. Overall, affordability hurdles may discourage some renters from becoming homeowners.
The document provides examples of how the VA guaranty is calculated for home loans based on a veteran's available entitlement, the loan amount, and county loan limits. It shows that the VA guaranty is typically 25% of the loan, but may be less depending on entitlement used and loan size relative to county limits. It also shows when a down payment may be required to meet investor requirements if the VA guaranty would be less than 25%.
Guardian Mortgage is offering a new construction home loan program that provides a 1% lender credit on the loan amount. This credit can be used to pay closing costs, buy down the interest rate, or a combination of both. The program is available for conforming, FHA, VA, and USDA loans for buyers within 90 days of their new home being completed. Borrowers should contact their Guardian Mortgage lender to see if they qualify for this program.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
You’re thinking of buying a home? Congratulations -- it’s an exciting
process. And it can be a lot of fun. You get to envision the type
of lifestyle you want for yourself (and your family). Do you want
a beautiful two-story home close to your work? Do you want a
modern, stylish condo in the heart of downtown? Are you yearning
to live near the beach, the mountains, restaurants, good schools,
museums, or family?
One of the greatest things about purchasing your own home is
that you get to make it yours. Even before you move in, you’re in
charge of making the decisions about which home you will buy.
It’s a powerful feeling -- having total control. But it can also be a bit
overwhelming, especially when you’re doing it for the first time.
That’s why we wrote this guide. We want to make purchasing a home
less scary and give you the confidence to move forward through
each step of the process -- from beginning to end, when you move into your new home!
You’re thinking of buying a home? Congratulations -- it’s an exciting
process. And it can be a lot of fun. You get to envision the type
of lifestyle you want for yourself (and your family). Do you want
a beautiful two-story home close to your work? Do you want a
modern, stylish condo in the heart of downtown? Are you yearning
to live near the beach, the mountains, restaurants, good schools,
museums, or family?
One of the greatest things about purchasing your own home is
that you get to make it yours. Even before you move in, you’re in
charge of making the decisions about which home you will buy.
It’s a powerful feeling -- having total control. But it can also be a bit
overwhelming, especially when you’re doing it for the first time.
That’s why we wrote this guide. We want to make purchasing a home
less scary and give you the confidence to move forward through
each step of the process -- from beginning to end, when you move into your new home!
Loan-Level Price Adjustment (LLPA) Matrix
This document provides the LLPAs applicable to loans delivered to Fannie. LLPAs are assessed based upon certain eligibility or other loan features, such as credit score, loan purpose, occupancy, number of units, product type, etc. Special feature codes (SFCs) that are required when delivering loans with these features are listed next to the applicable LLPAs. Not all loans will be eligible for the features described in this Matrix and unless otherwise noted, FHA, VA, Rural Development (RD) Section 502 Mortgages, HUD Section 184 Mortgages, and matured balloon mortgages (refinanced or modified, per Servicing Guide requirements) redelivered as fixed-rate mortgages (FRMs) are excluded from these LLPAs. This Matrix is incorporated by reference into the Selling Guide, and the related Selling Guide provision or Selling Guide announcement governs if there is an inconsistency. Refer to the Selling Guide, Eligibility Matrix, and your contracts with Fannie Mae to determine loan eligibility.
As a member of the National Guard
or Reserve you may qualify for
a wide range of benefits offered
by the Department of Veterans
Affairs (VA). VA is here to help
you and your family understand
the benefits for which you may
be eligible and how to apply for
them. VA benefits include disability
compensation, pension, home loan
guaranty, education, health care,
insurance, vocational rehabilitation
and employment, and burial.
This document provides an overview of FHA appraisal requirements and guidance as outlined in FHA's Single Family Housing Policy Handbook 4000.1 and the FHA Appraisal Report and Data Delivery Guide. It discusses topics such as appraiser competency and independence, legal property requirements, neighborhood and market analysis, site analysis including hazards and utilities, and reporting atypical property features such as accessory units. The presentation aims to help appraisers properly understand and apply FHA appraisal policies and standards.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. Any loan programs or rates mentioned are intended for illustrative purposes only and require underwriting approval.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. The document also notes that any loan programs or terms mentioned are for illustrative purposes only and require underwriting approval.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. Any loan programs or rates mentioned are intended for illustrative purposes only and require underwriting approval.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. The document also notes that any loan programs or terms mentioned are for illustrative purposes only and require underwriting approval.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. The document also notes that any loan programs or terms mentioned are for illustrative purposes only and require underwriting approval.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. The document also notes that any loan programs or terms mentioned are for illustrative purposes only and require underwriting approval.
This document provides contact information for Dean Wegner, a Branch Sales Manager at HomeStreet Home Loans in Scottsdale, Arizona. It lists his name, email, company website, address, phone numbers, and NMLS identification number. The document also notes that any loan programs or terms mentioned are for illustrative purposes only and require underwriting approval.
Here’s a few of the Pathway to Purchase program highlights:
1. The DPA will be 10% of the purchase price, up to a maximum of $20,000.
2. The Program is limited to the following 17 Cities:
a. Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa, Red Rock, Sierra Vista, Snowflake, Tucson, Yuma.
3. The Pathway to Purchase program will carry a five-year, no interest, no payment forgivable second mortgage.
4. Program funding is provided by the U.S. Department of Treasury’s Hardest-Hit Fund with a $48 million allocation through the AZ Home Foreclosure Prevention Funding Corp.
5. The available underlying mortgage type is the Fannie Mae HFA Preferred at a max LTV / CLTV - 95%/105%.
6. Many of the current HOME Plus DPA program guidelines will be the same.
The document provides the 2016 home and away game schedules for the Arizona Diamondbacks baseball team. It lists the dates, opponents, and start times for each game from April through September/October. No sponsorship or affiliation is claimed between the schedule and any teams or leagues depicted.
A 3 hour real estate general class will be held on February 18, 2016 from 11 AM to 4 PM at 15333 N Pima Rd #210, Scottsdale, AZ 85260. The class costs $10 and RSVPs are requested. The class will cover how to accurately value a home using a CMA similarly to an appraisal. The instructor is Phil Cook, a designated broker with Neighborhood Experts. Contact information is provided for Jarrod Williams to RSVP and Phil Cook. Dean Wegner's contact information is also listed as a mortgage originator.
More from Dean Wegner of Guardian Mortgage, Arizona 602-432-6388 (20)
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaFarmland Bazaar
Embarking on the journey to acquire a farmhouse for sale is just the beginning; the real investment lies in crafting an environment that contributes to our mental and physical well-being while satisfying the soul. At Farmlandbazaar.com, India’s leading online marketplace dedicated to farm land, farmhouses, and agricultural lands, we understand the importance of transforming a humble farmland into a warm and inviting sanctuary. Let's explore the fundamental aspects that can elevate your farmhouse into a tranquil haven.
BEST FARMLAND FOR SALE | FARM PLOTS NEAR BANGALORE | KANAKAPURA | CHICKKABALP...knox groups real estate
welcome to knox groups real estate company in Bangalore. best farm land for sale near Bangalore and madhugiri . Managed farmland near Kanakapura and Chickkabalapur get know more details about the projects .Knox groups is a leading real estate company dedicated to helping individuals and businesses navigate the dynamic real estate market. With our extensive knowledge, experience, and commitment to excellence, we deliver exceptional results for our clients. Discover the perfect foundation for your agricultural aspirations with KNOX Groups' prime farm lands. These aren't just plots; they're the fertile grounds where vibrant crops flourish, livestock thrives, and unique agricultural ventures come to life. At KNOX, we go beyond selling land we curate sustainable ecosystems, ensuring that your journey toward agricultural success is seamless and prosperous.
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
AVRUPA KONUTLARI ESENTEPE - ENGLISH - Listing TurkeyListing Turkey
Looking for a new home in Istanbul? Look no further than Avrupa Konutlari Esentepe! Our beautifully designed homes provide the perfect blend of luxury and comfort, making them the perfect choice for anyone looking for a high-quality home in the city.
With a wide range of apartment types available, from 1+1 to 4+1, we have something to suit every need and budget. Each apartment is designed with attention to detail and features spacious and bright living areas, making them the perfect place to relax and unwind after a long day.
One of the things that sets Avrupa Konutlari Esentepe apart from other developments is our focus on creating a community that is both comfortable and convenient. Our homes are surrounded by lush green spaces, perfect for enjoying a peaceful stroll or having a picnic with friends and family. Additionally, our complex includes a variety of social and recreational amenities, such as swimming pools, sports fields, and playgrounds, making it easy for residents to stay active and socialize with their neighbors.
https://listingturkey.com/property/avrupa-konutlari-esentepe/
Serviced Apartment Ho Chi Minh For RentalGVRenting
GVRenting is the leading rental real estate company in Vietnam. We help you to find a serviced apartment for rent in Ho Chi Minh & Saigon. Discover our broad range of rental properties in Vietnam.
For more details https://gvrenting.com/
If you're Planning to Build a House in Haldwani, Understanding the House Construction Cost in Haldwani is crucial. It's important to grasp the direct and indirect cost factors entailed in the Construction process before Initiating any work. This Understanding is pivotal for Efficient Budget allocation, allowing you to plan your finances more Effectively. Construction expenses can vary Significantly, Influenced by Diverse Elements such as site Location, raw material prices, Labour charges, and various other variables. Here at Geomatrix, we pride Ourselves on offering competitive rates for house construction in Haldwani, ensuring affordability without Compromising on quality and providing the best options within your budget. For a precise evaluation of the cost involved in constructing your dream home, consult our team of architects and construction experts.
For more information visit:
https://geomatrix.co.in/services/real-estate-project-management-in-haldwani/
Discover Yeni Eyup Evleri 2, nestled among the rising values of Eyupsultan, offering the epitome of modern living in Istanbul.
With its spacious living areas, contemporary architecture, and meticulous details, Yeni Eyup Evleri 2 is poised to be the star of your happiest moments. Situated in the new favorite district of Eyupsultan, claim your spot and unlock the doors to a peaceful life alongside your loved ones. Nestled next to the historical and natural beauties of Eyupsultan, embrace the comfort of modern living and rediscover life.
Social Amenities:
Yeni Eyup 2 offers a life filled with joy with its green landscaping areas, gym, sauna, children’s play areas, café, outdoor pool, and basketball court. Reserve your place for unforgettable moments!
Reliable Structure:
With 1+1, 2+1, and 3+1 apartment options, Yeni Eyup Evleri 2 is designed with first-class materials and craftsmanship. The doors to a safe and comfortable life are here! Choose the option that suits you best and step into your dream home.
Project:
Yeni Eyup 2 is conveniently located, with Istanbul Airport just 26 minutes away, the Mecidiyeköy Metro Line 4 minutes away, and the Tram Stop 5 minutes away, making your life easier with its central location.
Location:
Your home is positioned in a privileged location, providing easy access to the city center, shopping malls, restaurants, schools, and other important places.
Yeni Eyup 2 offers 1+1, 2+1, and 3+1 apartment options designed to meet different needs. Find an option suitable for every lifestyle and open the doors to a comfortable life in your dream home.
https://listingturkey.com/property/yeni-eyup-evleri-2/
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
At Geomatrix, we Pride Ourselves on our Commitment to Superior Craftsmanship and client satisfaction. Our team Consists of Highly Qualified specialists including Architects, Engineers, project Managers, and skilled labourers who work seamlessly together to achieve ourclients' Objectives. Geomatrix is recognized as the Best Construction Company in Haldwani, Dedicated to bringing visions to life with unparalleled Expertise and Professionalism.
For more information visit:
https://geomatrix.co.in/
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
1.
RESPA Reform FAQs
Good Faith Estimate
Q. If a loan originator expects to receive compensation from the lender in the form of Yield
Spread how is that disclosed on the new GFE?
A. All broker fees and compensation (YSP), either paid by borrower, seller or lender are
totaled together with any lender charges (such as Admin, Underwriting or Doc Prep) and
entered in Block 1 on page 2 of the GFE.
Q. If I disclose the YSP in Block 1 on page 2 and then it is disclosed as a credit in Block 2
this is a wash then, right?
A. Correct, the borrower’s “Adjusted Origination Charges” in Block A essentially becomes
the amount the borrower or seller must pay in cash at settlement.
Q. On page 1 is the “Name of the Originator” the company or loan originator name?
A. The company name must be entered; the loan originator name may also be entered.
Q. Since the borrower cannot shop for the appraisal or credit report company do I still have
to list who the fee is paid to?
A. The HUD‐1 must reflect all fees and to whom they were paid for all settlement services.
Q. When you say in 3 days do you count the current day?
A. Three days means the third day after the date of application. For example, application
taken December 21, 2009, GFE must be delivered no later than December 24, 2009.
Q. Is there a problem with over‐disclosing?
A. No, except that you need to remain competitive as the purpose of RESPA is to encourage
consumers to shop. Fees may be lower than quoted on the GFE but, subject to the
tolerance amounts, may not be higher.
Q. Where would attorney’s fee for the borrower be disclosed?
A. Only those fees in connection with the settlement must be disclosed. In states where
attorneys conduct the closing the estimated amount is disclosed in Block 4 and you must
list at least one attorney on your Settlement Service Provider List.
Q. Where do the Title update and inspection fees get disclosed on the GFE for 203K loans?
1
2.
A. The Title update fee is disclosed in Block 4. The inspection fee, if paid to an inspector, is
disclosed in Block 3.
Q. Is it true that broker and seller credits won’t show up on the GFE?
A. Yes, that is correct. All fees in connection with the transaction must be disclosed as a
charge to the borrower on the GFE. The HUD‐1 will disclose credits from the lender,
broker and/or seller.
Q. Is it possible to issue the old GFE or call it something other than GFE on a TBD property
and not be held liable for those estimates?
A. Yes, you may use a worksheet on a TBD property as long as it does not resemble the old
or new GFE.
Q. Is the 10 Days on #2 business days or calendar days?
A. The business day rule applies for the 10‐day rule.
Q: So brokers will not be able to get YSP at all anymore?
A: If a broker wishes to receive YSP it must be included in Block 1 under “Origination
Charge”.
Q: After we take an application from a borrower, a GFE is required to be provided within 3
days. The question “what constitutes an application” was asked by more than one
person in a State (MD) workshop I recently attended. From their standpoint, we’ve
technically taken an application when we ask those few questions over the phone, simply
to pre‐qualify someone. It does not even mean that we’ve pulled a credit report.
They strongly suggested that as a company, we have a written policy to define when an
application has been formerly taken. They suggested a WRITTEN policy stating that “an
application is not complete until we have a signed 1003 by the proposed borrower”. This
will help us to alleviate unnecessary paperwork, and stay in compliance with the new
RESPA changes.
HUD doesn’t specifically state that we can do this, but they don’t say you can’t do this.
They consider an application to be all the standard info gathered, and “any other
information deemed necessary by the loan originator”. Would you deem that okay?
A: You have two issues here: 1) the state definition of an application and 2) the federal
definition of an application. You must adhere to both regulations, which by definition of
the new RESPA rules, HUD has defined an application as having the 6 items: name,
address, income, estimated property value, social security number and loan amount. Yes,
you should have a written company policy to define an application, however, for federal
2
3.
purposes, if you have the 6 items from the borrower which HUD has defined as an
application then you must issue a GFE within 3 days, whether you have a signature on
your application or not.
Q. I complete an application for purchase of a property prior to a contract (Connecticut is a
contract state – without a signed contract, there is no deal). Known loan amount, known
YSP, known compensation in dollars based on loan amount and YSP. GFE is issued.
Buyer/Applicant decides on another property. Is a new GFE issued at that point?
A. In this situation you have an application withdrawn on property 1 and a new application
for property 2. New application, new GFE and Truth‐In‐Lending Statement. TILA time
frames start over.
Q. If we do a GFE to prequalify someone for a purchase, are we bound by it since we don’t
have a property address yet?
A. Yes, if you issue a GFE without a property address you are bound to the terms.
Q. If a customer chooses to pay discount points to buy the rate down, how do we show YSP?
A. Originators will disclose the amount of compensation they wish to receive together with
the lender fees in Box 1 on page 2 of the GFE. The loan will be priced with a credit
(YSP) or discount, which will be disclosed in Box 2 on page 2 of the GFE. A loan would
never have both a YSP and a loan discount.
Q: Are they considering a credit pull as an application taken? In other words, if I pull credit
do I have to produce a GFE?
A: No, HUD has defined an application as having the 6 items: name, address, income,
estimated property value, social security number and loan amount.
Q: As a broker...on page 2 GFE, if block 1 "Our origination charge" is $4,000 and block 2 has
$2000 credit (for YSP) and section A "Your Adjusted Origination Charges" therefore
shows $2000, then after closing broker still gets paid $4000, correct?
A: The $4,000 of the “Your Adjusted Origination Charges” covers your origination fee,
processing fee, underwriting fee, admin fee, and doc prep. Any fee that is being paid to
the broker or lender for the cost of doing that loan must be included in the origination
charge in block 1. Once everyone is paid, whatever is left over goes to the broker.
Q: Automated systems pull these costs into DU or LP, it will appear customers do not have
enough to close if there is seller assist.
A: Yes, there are many areas that the systems we are using will have to be updated to meet
the new requirements. You might want to try telling the system who is paying the costs
and see if that works.
3
4.
Q: Do escrow fees go in Block 4 in escrow states?
A: If you are referring to Settlement Charges, then yes.
Q: Can your Origination Fee INCREASE when they float a lock?.
A: No, your Origination Fee cannot increase with the floating of a lock. Your origination
charge you include in Box 1 is what you are paid and does not move with the floating of
the lock.
Q: Is a change of loan program initiated by borrower considered a change of circumstance?
A: Yes, it could be, however, remember only the fees associated with that change can be
made.
Q: How are broker points handled regarding IRS? Tax Deductable?
A: You are paid by your origination fee now not broker points.
Q: Will originators be accountable for overages on the settlement on the Title side, even if
the borrower did not pick the settlement company?
A: You are only bound to tolerances if the borrower selects a servicer you provided on your
service provider list.
Q: In Box A, If I show less yield spread than my final lock (assuming it was not locked when I
did the GFE), but my total compensation is still less than my GFE, am I okay? (I plan to
ove‐disclose the total on every loan).
A: You only get paid for what you put in Box 1 for your origination The YSP belongs to the
borrower and floats until it is locked.
Q: Calyx software seems to want the YSP to be listed in two places in order to get the Page
2, Box A, Line 1 and 2 correctly. We list our YSP as paid by borrower under the mortgage
broker fee, and then must list it as YSP on line 815 added to the Initial Fee Worksheet.
This seems wrong. Must we list it twice to get it right once?
A: We have referred this question to Calyx and will get back to you.
Q: Most of our borrowers want to lock upon applying for the loan with us. One of our
lenders will not allow us to lock the loan until they "Certify the GFE". For the borrower
this means they cannot lock in advance of a possible rise in rates. This makes re‐pricing
from the lender that much more deadly. Was that HUD's intent?
A: That was not the intent of HUD. There are many lenders who are allowing forward locks
so check around with other lenders. We hope to see things settle down once everyone
knows what is going on.
4
5.
Q: If you are sitting in a restaurant taking a loan app on a cocktail napkin, does the 3 day
clock start when your business opens the next day?
A: The day you take the application starts the clock.
Q: Ccan you go back to the service provider who raised their fee and collect from them?
A: No.
Q: Do you think lenders’ underwriting will be more conscious of the cost of the conditions
they ask for? For example, “Broker to provide a VOE". If using a third party verification
company is company policy, the cost is not accounted for initially on the GFE. Now who
absorbs the cost?
A: No, underwriting guidelines are not looking to becoming less restrictive any time soon. In
that case it could be considered a changed circumstance and you could re‐disclose and
add the fee for that.
Q: Our lender wants us to list both the owner’s AND the lender’s Title policy. Does that
seem right to you?
A: As it is required by HUD, yes.
Q: Can one provide a GFE if the property is TBD?
A: Yes, but you would be bound to the terms.
Q: Can the amount in line 2 go down if the YSP we actually make is less?
A: Yes, the amount in line 2 can do down if the YSP changes, but the YSP goes to the
borrower not the broker.
Q: Is the PIMI binding? What if the MI factor changes during underwriting?
A: That would be considered changed circumstances and the fees associated with the MI
factor could be adjusted and a new GFE re‐disclosed.
Q: What if we get a rebate (YSP) and we are NOT crediting it to the borrower’s closing
costs. Does it still have to be shown in the 2nd box of number 2?
A: Yes, it must be shown in the 2nd box of number 2. You do not have a choice about
crediting it to the borrower. YSP must always be shown in box 2.
Q: So are you saying that we need to issue a new GFE after we lock a loan that was
previously floating?
A: Yes.
5
6.
Q: Is our YSP included in the "Origination Charge"? I am confused!
A: If you would like to get paid the amount equivalent to the YSP, then you must include it
in box 1 under “Origination”.
Q: What about the lender's Title policy which is paid for by the seller? Does that still have to
be shown? If so, where?
A: If you are talking about owner’s Title policy, then yes it has to be shown in block 4.
Q: If we are doing a conventional loan and a termite inspection is not required, do we still
need to list that fee?
A: No, you do not.
Q: Can we lock a loan before the borrower has given an acknowledgement of receiving the
GFE and moving forward with the loan?
A: No, you cannot lock a loan until the borrower makes a commitment to proceed.
Q: Can you clarify the 10 days ‐ can it be shortene, if the letter of intent is signe?.
A: Yes, the 10 days can be shortened if the borrower acknowledges intent to proceed.
Q: If we issue a Good Faith Estimate for a pre‐approval, for instance on a 5/1 for
compliance, then when a property is located change program to a 30 year fixed which
would be a changed program and allow for new origination, etc., do we have to reissue
the GFE?
A: You do not need to issue a GFE on a TBD because you do not have all 6 of the items
identified by HUD as required for an application. However, if you choose to provide a GFE
on a TBD, then yes, you would issue a new GFE but you cannot increase your fees you
disclosed on your first GFE.
Q: Can you pull credit without giving a Good Faith, if you don't have an address?
A: Yes you can.
Q: What if lender programs change in the 10 days?
A: HUD does address issues with program changes and depending on the change it could be
considered a changed circumstance.
Q: Do Escrow fees go in box 4?
A: Yes.
Q: What can we do with VA loans? Are we limited to the 1%.
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A: In reference to VA loans see circular 21‐10‐01. It says that the lender/broker may only
charge the veteran a flat fee up to 1% of the loan amount. The flat fee is meant to cover
lender/broker costs and services, which are not reimbursable.
Q: Can you put a random address (like your office address) on a GFE so that there is an
address on every GFE thus eliminating the problem of not increasing fees on TBD
properties?
A: No, you cannot put a random address on a GFE or an application. The application and
GFE are legal documents. Please refer to this section of the loan application that you
sign: IX. ACKNOWLEDGEMENT AND AGREEMENT Each of the undersigned specifically
represents to Lender and to Lender's actual or potential agents, brokers, processors,
attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that:
(1) the information provided in this application is true and correct as of the date set forth
opposite my signature and that any intentional or negligent misrepresentation of this
information contained in this application may result in civil liability, including monetary
damages, to any person who may suffer any loss due to reliance upon any
misrepresentation that I have made on this application, and/or in criminal penalties
including, but not limited to, fine or imprisonment or both under the provisions of Title
18, United States Code, Sec. 1001, et seq.
Q: Can you shorten your lock period @ #3 to allow for delivery to the investor?
A: Yes, you can shorten the lock period to whatever you would like to place it at.
Q: Cash‐out refinance @ 65% LTV with .75% origination fee included in "Origination
Charge". Appraisal comes back and now LTV is 55% LTV. Do you have to re‐disclose with
a credit of the .75% orig or can you just give them line item credit at closing?
A: You should check with your lender to find out what their policies are for changed
circumstances and follow their guides. Most are requiring re‐disclosure of any changed
circumstance. This would not affect your origination you disclosed and you will get paid
the original origination fee.
Q: Discount points: you said that a mortgage banker cannot charge a discount point. What
if there is a cost to get the rate the borrower wants. Aren't we allowed to charge points
to cover the cost?
A: Yes, mortgage bankers can charge discount points and it would be listed in box 3 of box
2.
Q: If the purchase price changes, which will change the loan amount, can the fees that were
based on the original loan amount be changed (higher or lower) to correspond with the
new loan amount?
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A: If by fees you mean your origination fee, the answer is no, your origination fees cannot
change.
Q: Does the GFE have to be mailed or can it be emailed?
A: The GFE can be emailed but you need to be sure to follow the requirements of the E‐Sign
Act.
Q: Does the term “originator” include banks?
A: Yes.
Q: Does the YSP credit count towards total seller/3rd party concessions?
A: You will want to check with your investor to determine how they are handling this. This
question has not yet been answered by HUD. Watch for updates.
Q: Does this mean you don't have to get an authorization form to pull credit?
A: You will still need to obtain authorization to pull credit.
Q: Earlier she mentioned that a sales contract was not something to hold up GFE. So what
do you do in the case where you have an offer in on a property but the seller has not
accepted yet or lender approved in the case of a short sale. Short sales are more than
50% of our market so this is very important. Borrowers are making offers on multiple
short sales at a time so this gets very confusing.
A: This issue has gone back to HUD to address regarding multiple offers. Stay tuned for
details. HUD has defined an application to include property address so if you do not have
that yet, then you would have an application with a TBD so would not need to issue a
GFE.
Q: I would like to know the details on the exam requirement by federal as well as state law.
I live in California. I hear that we need to sit for 2 separate tests to get a separate license
in order to originate loans.
A: Although a different topic, yes you will have to sit for two separate tests, one state and
one federal. You can schedule them to overlap. Allow three hours for the federal test and
two for the state test. MSS will be offering a test prep course within the next few weeks.
Q: Their intention to move forward: how does it need to happen, written or verbal?
A: It can be either written or verbal. Your company should establish a policy because the
GFE has no place for a signature and you cannot add a signature line.
Q: In NY, where you pay mortgage tax which is a percentage of the loan amount, where
does that go on the new GFE?
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A: It would go on line 8 on page 2 of the GFE.
Q: If a loan amount changes can origination charge change as well?
A: No. The origination charge cannot change with a loan amount change.
Q: After locking a loan do we have to re‐disclose? For “Service Provider” do I only list
providers that we do require to use our servicers?
A: Yes, you will re‐disclose after the loan is locked. A list of service providers is a list of
providers that the borrower can choose from, not that you require them to use.
Q: So a correspondent lender does not have to show any SRP?
A: If you are funding the loan on your own line you do not have to disclose SRP, if you are
not funding the loan on your line you will need to disclose YSP.
Q: How are we supposed to supply fees for Title if the property is bank owned and we don’t
know what the bank’s Title company is charging before the 3 days is up?
A: List fees from your list of Title companies that you provide on your service provider list. If
they do not select the service provider you provide on your list you are not held to those
tolerances.
Q: Where do I get information regarding the Transfer Taxes?
A: A Title company is a good source for this information.
Q. If I issue a GFE based on a floating rate and YSP of 1.5% but when it comes time to lock
the YSP is 1.75%, do I get to keep any part of the additional YSP?
A. The additional credit (YSP) would be given to the borrower, as the origination charge in
Block 1 cannot be increased due to a lock event.
Q. If we forget to disclose a fee on the GFE, can seller, Realtor or other third party other
than the broker pay for it at closing?
A. Fees that were not disclosed cannot be charged at closing.
Q: If the borrower changes the loan amount can I re‐disclose and make more YSP?
A: It would be necessary to issue a revised GFE, the only fees that would be changed are
those associated with the loan amount. That being said, you would not be able to make
more YSP. Your compensation is not associated with the YSP. You state how much you
wish to be compensated and that is it. The compensation is no longer associated with
the loan amount.
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Q: If loan is floating and rate improves when I lock can I make the extra YSP. If not, does the
lender keep that extra YSP I would have made?
A: Unfortunately no, you will only be compensated by the amount that has been put into
Block 1 when you issue the GFE. Locking the loan is not associated with your
compensation.
Q: If the changes are a reduction in fee(s) or the borrowers are paying less than what was
originally disclosed, is a new GFE required?
A: Yes, HUD does not make a distinction between up or down.
Q: If the GFE is considered a binding contract why is there no signature block on the GFE?
A: Very good question, unfortunately way above my pay grade. Comedy aside, there has
never been a regulatory requirement that the GFE be signed. It has always been an
industry issue. HUD has now made a statement that they don’t want the signature line
added because they do not want the GFE altered. They don’t object to a separate form
showing an acknowledgment.
Q: What if box 1 “Origination Charge” actually decreases after locking the loan? What is
required?
A: If there was a reduction in the amount of fees being paid to the lender or your
compensation was reduced, then a new GFE should be done.
Q: If the Up‐Front MI and VA Funding Fee are part of the 10% tolerance, what happens if
the loan amount changes?
A: That would be a changed circumstance and you would be able to issue a new GFE
changing those fees.
Q: If the Title company is chosen by seller/sellers attorney on a purchase transaction, are
the Title fees subject to the 10% tolerance?
A: If those companies are not on your Provider List, then you should not be subject to 10%
tolerance.
Q: How are SRP and YSP disclosed on page 2 for mortgage bankers
A: The SRP is not disclosed. If the loan is closing in your name and you are using your own
funds to close, the YSP could be considered a secondary market pricing situation. If you
do not use your own funds to close (warehouse line), you would be considered a broker
and must disclose.
Q: If we do not lock the rate, and issue a new GFE based on the locked rate, can we then
change our origination charge on that revised GFE?
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11.
A: No.
Q: What if we have a locked refi and it does not fund by lock expiration date, can we send a
revised GFE reflecting the lock extension or re‐lock fee? Again, can we change 1. or must
we reflect in 2. sub‐box 2 or 3?
A: First of all, check with your Investor to determine what their definition of changed
circumstance will be regarding re‐locks. It may not be possible to issue a new GFE. This is
a grey area. What caused the need for the extension? If it was due to something the
lender or broker did, HUD will not allow the borrower to pay for that error. Your
compensation in Block 1 cannot be changed.
Q: Shouldn't we just NOT do an official GFE is there is no property address yet, just do a
worksheet? In the case of a refi, couldn't we just not collect the income and do a
worksheet vs. an official GFE?
A: If there is not property then provide the borrower with a worksheet that provides the
info they are seeking. Just make sure it is clear that the worksheet is not a Good Faith
Estimate. In the case of a refi, it is highly unlikely that you would not obtain all 6 items
needed for an application. Therefore, you should be issuing a GFE.
Q: I do NOT understand why you would EVER issue a GFE on a TBD address. Just issue a
worksheet.
A: You are correct.
Q: What if the loan amount changes due to either low appraisal or client request, can we
then re‐quote settlement agent changes. i.e., lender's Title insurance and escrow fee
might change.
A: You can only change those fees that are associated with the loan amount (excluding
Origination fee).
Q: What if the LTV comes in much lower than expected, and the locked rate's pricing is now
much different, can we change 1. loan orig. fee, or must we only make the adjustment
by showing a change in 2. sub‐box 2 or 3?
A: You will not be able to change the fee shown in Block 1.
Q: If we don't lock, do we quote YSP?
A: It would depend on what rate you quoted.
Q: You mentioned a 60 day disclosure relevant to "new construction" where you might have
issued a GFE 120 days before settlement. You mentioned a very important disclosure to
issue... Can you provide?
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A: In transactions involving new home purchases, where settlement is anticipated to occur
more than 60 calendar days from the time a GFE is provided, the loan originator may
provide the GFE to the borrower with a clear and conspicuous disclosure stating that at
any time up until 60 calendar days prior to closing, the loan originator may issue a
revised GFE. If no such separate disclosure is provided, the loan originator may not issue
a revised GFE in the absence of changed circumstances or another event as provided in
24 CFR § 3500.7(f).
Q: I don't understand the implications of the "shopping period". Apparently that's
important... Does it mean that I don't begin to process the loan until they've shopped
around?
A. You can go ahead and begin processing. The shopping period just means that the
borrower has the opportunity to go out and seek other services just in case they do not
want to use the provider you suggested.
Q: If we have a borrower's social security number, along with the other 5 items required to
meet the GFE application definition, is it assumed that we have checked the credit (and
credit score) when we issue the GFE?
A: Checking the credit and the credit score is not relevant to the issuance of the GFE. Once
you have those 6 items, you have triggered the need for the GFE.
Q: If we have to change lenders, my understanding is that this is a denial from the first
lender and that we are starting over again with a new loan file. Is this correct?
A: You are correct.
Q: If the loan amount changes, isn't this a changed circumstance? Origination is tied to loan
amount and therefore the bottom line figure would change.
A: Origination is no longer tied to loan amount. You must determine the amount you wish
to be compensated. It does not matter what the loan amount is.
Q: If we pull credit and see a judgment that will have to be paid off, do we have to include
that figure in the GFE? Collections that u/w is requiring to be paid off wouldn't be known
at time of GFE.
A: No, the judgment would not go into the GFE, the issue of the judgment or collection
could affect pricing which would affect the GFE.
Q: If you have an acceptable change of events requiring new disclosure, is there a time limit
on how quickly you must re‐disclose the new revised GFE?
A: Yes, you must re‐disclose within 3 business days of the changed circumstance.
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13.
Q: If you have the 6 pieces of information, but the borrower is denied, do you still need to
send a GFE? It seems to contradict what the previous speaker said.
A: If the denial is made within 3 business days of application, you would not have to issue
the GFE.
Q: If you lock the loan and it changes box 2, can the credit go up or down, this would be a
changed circumstance correct?
A: Yes, it would be a changed circumstance. However if the credit goes up, keep in mind
that that increased YSP will not go to you as compensation, it would be credited to the
borrower.
Q: In a purchase transaction, the agents charge the borrowers admin fees or offer the
borrowers a home warranty. How do we include that on our GFE and are we responsible
for those fees if we were not made aware of those fees?
A: HUD states that those fees are between the borrower and agent and are not part of the
loan transaction so therefore they would not be put on the GFE.
Q: In your example number 1, is all YSP credited back to borrower? What is the total
compensation to broker after credit? $2500.00?
A: Yes, the amount is credited to the borrower.
Q: On the example, you gave GFE date of January 1, but had a January 15 date instead of
10 days, why?
A: You have to give the borrower 10 business days from when the application is taken.Since
the example came from HUD, and they used Monday‐Friday as business days. It works
out 4‐8 then 11‐15.
Q: Is HUD basically giving the borrower the option to close with the Title company of their
choice? What happens in the cases related to foreclosures where there are designated
closing agents?
A: Yes, they are giving the borrower their choice. In those instances where HUD has
designated the closing agent, it really doesn’t matter. You would base your quote off the
provider on your list and then if there is another provider chosen by the borrower or
agent, you will not be held to the 10% tolerance.
Q: Is it better NOT to include the YSP credit information and just explain to the borrower
that they'll get it?
A: No.
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Q: Do you feel like some evil dastardly power monger hates mortgage brokers and has
made it his life goal to put us out of business?
A: That is a very good question for your Congressman and Senator.
Q: If I quote section 2 that you'll get a credit and the market changes...then must I still
provide that credit? If I say on page one that the rate quote is good until NOW, then
does that negate the 10 business day period during which you must honor the
information provided?
A: Once you lock the loan, the amount quoted in block 2 is set, market changes don’t allow
for change. The time limit on page 1, question 1 does not affect the 10 day period. They
are separate.
Q: Is it permissible by HUD to provide an estimated cost analysis before providing the GFE.
A: Yes, as long as you have not collected the 6 needed items defining an application.
Q: Is the zero tolerance in box 1 only for increasing the dollar figure? Are you saying we
can't over‐estimate and lower that figure later?
A: You can lower the figure, you just can’t increase.
Q: Is there any way to safely do a TBD application?
A: Yes, just don’t think about it as an application, but as information being gathered.
Design a worksheet that you can provide to your borrower that will provide you with the
information you need to qualify the borrower and then also provide the proposed
payment and closing costs. Just make sure it does not look like or say Good Faith
Estimate.
Q: It's my understanding that it's a HUD violation to break down the origination costs in
writing.
A. On the GFE itself you cannot. You can break it down on a separate form and it can be
broken down on the HUD‐1.
Q: On #3 important dates, if we lock a loan for 30 days don't we really need to put 26 days
to account for the rescission?
A: No, you would put the actual number of days the lock is active.
Q: If the broker pays for the appraisal out of his own funds (to be reimbursed later by the
borrower) is this a workaround to getting the appraisal ordered within the first 3 days?
A: No, because you are still imposing a fee. You cannot charge nor impose a fee.
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Q: On 10% tolerance, the indication is that the total fees cannot change by more than 10%,
even if some line items in that category vary by more than 10%. Is this correct?
A: The 10% tolerance is based on an aggregate, so some fees may be higher and some
lower you just don’t want the net to be over 10% higher than what was originally
quoted.
Q: On a purchase I cannot think of anything to put on the Service Provider. list since the
agents will pick Title co. What would there be? Can't shop appraisals.
A: It’s a false impression that the xeller chooses the Title company. In fact, that is a RESPA
violation when the borrower is forced to use a particular company. They must be given a
choice. That being said, it’s not reality. Reality is that the xeller will “suggest” a Title
company or closing agent. It’s up to the borrower to select. What HUD is expecting from
you is for you to provide a name and contact information for the company from whom
you developed your quote. They want to know you have not pulled the numbers out of
the air. So develop your list of settlement agents, Title companies and any other service
provider that you would require the borrower to use during the loan transaction.
Q: On a TBD property, if they purchase price goes up, how can there be a zero % tolerance
on the transfer taxes?
A: Therein lies the risk of issuing a GFE on a TBD. You should not have issued the GFE, but if
you did; you are stuck with the fees because finding a property is not a changed
circumstance.
Changed Circumstance
Q. What happens if the payoff demand changes and I have to increase the loan amount?
A. This would be a changed circumstance, which would be reviewed by the underwriter,
and any fees that may change as a result of this changed circumstance would be re‐
disclosed.
Q. If the lender re‐issues a new GFE, is it subject to the same procedures as a TIL re‐
disclosure?
A. If a GFE is re‐disclosed due to changed circumstance the revised GFE must be re‐issued
within 3 business days of notification of the changed circumstance. The borrower is
presumed to receive the re‐issued GFE 3 calendar days after placing it in the mail. Unlike
TILA, there is not a 3‐business day wait period after it has been received before the
transaction can proceed. RESPA does not negate any disclosure requirements under TILA.
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Q. In extending a lock, if the rate does not change, only the credit (YSP) is reduced does a
re‐disclosed GFE have to be sent to the borrower?
A. Yes, all lock events require a re‐disclosed GFE. The credit amount would be adjusted and
the dates on page 1 would be changed.
Q. If the borrower puts less down and the loan requires MI that I did not originally disclose,
what happens?
A. This would be a changed circumstance subject to re‐disclosure within 3 business days of
being notified the borrower wants to decrease their down payment.
Q. If the borrower changes their mind and increases their loan amount can I increase my
origination charge?
A. No. The amount disclosed in Block 1 “Our Origination Charge” is no longer a percentage
of the loan amount and cannot be changed after the GFE has been accepted by the
borrower.
Q. On a VA loan if the Veteran says he/she is exempt from the VA Funding Fee and we
subsequently find out he/she is not and must pay the Funding Fee is that a changed
circumstance?
A: It is, but would be very difficult to document unless the Veteran signed a statement
when you issue the GFE. Unless you have evidence he/she is exempt I would include it on
the GFE and let them know that, with verification, they may not be required to pay that
amount.
Q: What if the borrowe,r after receiving the GFE, decides they want to pay an origination
point to get the lower rate and when the GFE was issued it was at 0+0 on a higher rate.
Is that a changed circumstance because the borrower is deciding to change?
A: The origination charge cannot change once the GFE is issued. The borrower can change
their rate and pay discount points but you cannot change the origination fee you have
disclosed in box 1 of page 2 of the GFE ‐ “Adjusted Origination Charges”.
Q: Can you change your fees with change of circumstance? Example: going from a30 year,
$4,000 total origination to a 15 Year, $5,000 total origination.
A: No, you cannot change your fees with a change of circumstances. Only the fees
associated with the change can change.
Q: Doesn’t sales price change qualify as a changed circumstance and then allow you to
adjust the origination fee according to the changed sales price?
A: While this would qualify as a changed circumstance it does not allow you to increase
your origination fee to accommodate the changed sales price. Once you have disclosed
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your origination fees on your GFE and the borrower has accepted those terms you are
held to those fees.
Q: How does this apply to the new GFE requirements that income changes don't create a
change in circumstance that would allow for an adjustment to the GFE? i.e., if a
borrower has given me verbal income information, I prepare a GFE based on that verbal
information and the actual income verification is less than what was required to prepare
the GFE?
A: If the information provided by the borrower is incorrect then that could be considered a
changed circumstance, however, that does not mean that you can increase your
origination fee.
Q: If the client, due to a change in circumstance, has to pay more to close can we leave the
origination charge the same and increase the rate?
A: Be careful here, the increase in YSP to cover those other closing costs may affect your
compensation. Remember, the compensation you entered in block 1 stays the same. Any
increase in YSP will be deducted from this amount and credited to the borrower.
Disclaimer: This publication is designed for use in conjunction with BFO Solutions Incorporated, Mortgage Success Source, and
Go2Training training programs, and is believed to be accurate and current as of the date of printing, but is not guaranteed, and due to
industry and regulatory changes is subject to change at any time. This information is provided with the express understanding that BFO
Solutions Incorporated, Mortgage Success Source, and Go2Training training programs, its agents and/or representatives are not engaged
in the providing of financial, legal or accounting advice. Users should consult with appropriate professionals for further clarification of
contents contained within if desired, and agrees to hold harmless BFO Solutions Incorporated, Mortgage Success Source, and Go2Training,
their employees, representatives, trainers, consultants, program sponsors and affiliates from any liability resulting from use or reliance of
any material contained within.
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