On a refinance loan without an escrow, am I right in saying that the property tax does not need to be disclosed anywhere on the HUD 1?

On the list of providers that we give to clients, is tehre some kind of disclosure that needs to be on the list?

When a lender receives a loan package from a broker who has already provided a GFE, can the lender provide a new GFE, or only a "revised" GFE with those terms and fees that have changed due to a changed circumstance? In other words, are lenders bound to the GFE the broker provides?

1. I didn't think we were required to give a provider list on something like a home inspection if we're not requiring one, but it's in the purchase contract bewteen the buyer and seller. Are you saying that we'd need to give a provider list in those situtations?

2. I was referring specifically to Owner's Title Insurance, which is in Block 5. We don't require the borrower to purchase this except where it's required by state law.

Will-

1)-no-if it is a lender required service that would be a different story

2) Owners title is optional everywhere we lend as well, but they still want it disclosed so the borrower is aware of the cost up front, even if they don't want to purchase it. In either case, we do not allow the borrower to shop for their own.

You are correct.

Not by regulation. You may WANT to add a disclaimer indicating you don't endorse the providers, have no relationship with them (if applicable), etc.

This is an area of confusion for me and others. There are several Q&As in the RESPA FAQs you should review.
GFE-General #7 & 16,
GFE-Changed Circumstances #8 i) & xv).

3500.7(f) says that you are bound by the broker issued GFE unless you must issue a revised GFE due to a changed circumstance or borrower requested change. The Q&As about "changed circumstances" might help as well (or they may just confuse you).

I understood the speakers at the OTS conference call held this month to essentially say that you are tied to the broker's GFE.

For clarification reasons, it is not just a "we now feel like it" but say we find out during the underwriting process that they have been dilequent on taxes, so we want to make sure that they remain current on taxes while they have an outstanding loan with us, so we now want escrow. Is this a changed circumstance that would justify changing the GFE?

I think it would be, DD. If you discovered that after the GFE was issued, you could do that.

I couldn't find anything in the FAQ that says the same thing about the GFE.

The point is that optionally giving any disclosure doesn't make the loan subject to the law/regulation.

Good question. My opinion - if you find out they are delinquent on taxes, that is a changed circumstance that allows you to change loan terms, such as requiring an escrow.

Is there a page 2, block 2 expert in the house? This is what has me scratching my head. Looks like most of the guidance is geared towards mortgage brokers, not lenders...I need to know if points in the total of block 1 need to be disclosed in block 2, box one. Also, if a credit is being given for all or some, can we choose to simply subtract form the total in Block one and not clarify in block 2, box 2?

Your answer to #1 seems to be in conflict with David's. What is the basis for your conclusion? I agree with you but I realized that I couldn't find anything in the Federal Register or the FAQ that supported my view.

Regarding #2, I agree that we need to disclose an amount in Block 5 even if we don't require owner's title insurance, but I wasn't sure if we needed to list the provider on our provider list. I guess that will be answered based on how we resolve item #1.

In a retail loan (no broker) You can choose to include the discount points (charge or credit) in block 1. If you do that you'd check box 1 in block 2 saying that the points are already included in block 1.

As an alternative you can show the points in block 2, which means they would not be included in block 1. When using block 2, if the borrower pays points to get a lower rate you would show this in the third box in block 2. If they receive a credit in exhange for a higher rate you'd use the seccond box in block 2. This is from an ABA phone briefing presentation by Weiner Boedsky Sidman Kider.

Sox, For what it is worth, that is the way I understand it too.

David - is this stated in the Q&A? I'm not finding it. Thanks!

I would certainly defer to David, but if the home inspection is not a lender required service, regardless of whether it is in the sales contract, you don't need to provide a list of home inspectors. JMHO

Thanks to both of you. Now to come up with a consistent procedure.

In the instructions for completing the HUD, it says "Lines 901–904. This series is used to record the items which the Lender requires to be paid at the time of settlement..."

Personally I prefer we show them the points in the 3rd box.

No. No where does it say you need to disclose taxes - except in the 1000 series (escrow). It's not that they tell us NOT to disclose it. Rather, it's they don't tell us to disclose it.

I agree. Only lender required settlement services & Owner's Title Insurance (whether required or not) are listed on the GFE.