It seems that everyone is still up in arms about the new Good Faith Estimate. If you are a little confused, don't be too hard on yourself. It is not because of you being a bad loan officer or a slow learner. The new GFE really pushes loan origination into a completely new arena. Many large lenders (who have very large and well paid compliance departments) are having a tough time understanding the new GFE and its effects. Here's a quick reminder, or tutorial, on costs:
- Costs which are GUARANTEED by the new GFE:
- Origination charges
- Interest rate related costs, AFTER the interest rate is locked
- Adjusted origination charges
- Transfer taxes
- Costs which may increase up to 10% at settlement:
- Required services selected by originator
- Title services and lenders title insurance, if provider was selected by originator or by consumer from originator's list
- Owner's title insurance if provider is on the originator's list
- Other required services chosen by the consumer from the originator's list
- Recording fees
- Costs which may change without limitation at settlement:
- Required services selected by consumer when they DO NOT choose a company identified by the originator on the originator's list
- Title services and lenders title insurance if provider was selected by consumer and was NOT included on the originator's list
- Owner's title insurance if the provider is NOT on the originator's list
- Escrow account deposit
- Daily interest charges
- Homeowner's insurance
Hopefully this helps. If you or your company would like some live training with us, please use the 'Contact Us' tab on our website (www.praedo.com).
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