I didn't listen to any of the HUD presentations. From what I'm hearing I'm glad I didn't.

From page 22 of the 11/19/09 FAQs:

3) Q: Can the charge shown on the GFE, Block 1, ―Our origination charge‖, increase after the GFE has been issued?
A: No. Block 1, ―Our origination charge‖ cannot increase unless there is a ―changed circumstance‖ as defined in 24 CFR § 3500.2.

To me this plainly states that Block 1 can change in relation to a qualified changed circumstance, however keep in mind that only the charges shown in Block 1 that are affected by the changed circumstance can change.

What I'm most concerned about is page 23 Q&A #4. If we have stated a credit in bullet #2 in block 2 does that asinine answer apply unless the rate and credit are reduced together? We don't have "no cost" loans but I'm concerned they will try to apply that answer to any credit shown in Block 2.

As a lender, we are considering just using the first bullet point in Block 2 for all our loans (even the ones that pay points to buy down the rate) with the exception of our FHA and VA loans because we are a correspondent and fall under the broker definition for those loans.

if no additional charges or credits apply.

Or lenders have attached a mortgage to an auto loan... I am not so worried about the recording fees as I am about the 200-250 charge the lender is charging us to review it.

Per HUD's 'plain english' garbage: Block 1 fees CANNOT change, even with a changed circumstance. The exception being: if the loan amount changes and a portion of the origination charge is a percentage of the loan amount or the overall loan program changes.

This leads me to believe that when the title comes back on that refi and we need to the other bank to review and subordinate, where can I put that fee?

I made some changes to the sample wording you posted. Any comments or suggestions?

"The ABC Bank allows you to shop for certain settlement services. The attached list contains the names of service providers that you may choose to use. The ABC Bank does not specifically endorse these providers and the list is being provided to you in accordance with section 3500.7 of HUD’s Regulation X (RESPA) and the instructions in Appendix C of the regulation.

Dan, what concerns me about their prescribed usage of first bullet, block 2 is that they state it can only be checked by the lender

This looks fine to me. I just took our present form and changed a couple of things. Although you are not required to list your relationship any longer there is no prohibition from doing so that I'm aware of. I basically took the path of least resistance.

I would suggest however informing them the provider they choose must be licensed and regularly perform the service, otherwise they bring in Uncle Jed as their provider. But this is only a suggestion.

Does anyone know what block real estate taxes that are due go on the new GFE?

With the exception of the few FHA and VA loans we process we are the lender. For FHA and VA we are a correspondent, for now anyway.

From Appendix C for Block 2:

For transactions without a mortgage broker, the lender may choose not to separately disclose in this block any credit or charge for the interest rate chosen on the loan; however, if this block does not include any positive or negative figure, the lender must check the first box to indicate that "The credit or charge for the interest rate you have chosen" is included in "Our origination charge" above (see Block 1 instructions above), must insert the interest rate, and must also insert "0" in Block 2. Only one of the boxes may be checked; a credit and charge cannot occur together in the same transaction.

what I don't get is when they say you can only check the first box IF no additional charges or credits apply

HUD's Answers To Some Questions - I've posted these outside of this long thread:

1) RE: Can Block 1 Change - discrepancy between FAQ and Plain English Slides: http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1311522#Post1311522

2) Re: Escrow Waiver Fee: http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1309777#Post1309777

I hope this isn't considered double posting, but for search purposes, I thought it might be helpful to have those outside of this long thread to find.

We have our attorney do title exam, prepare HUD, and prepare mortgage for us. Would the fee for them to prepare the mortgage go in Block 1 or Block 4? HUD's Q & A if you look under Block 1 question (6)and HUD-1 - 1100 series question (3) they totally contradict each other.