Probably more stupid questions . . . but then that seems to be the norm for me for the last several weeks!!!!!

#1)If a customer arrives at the bank, ready to make application and has with him, his tax returns we can accept them at that time, even though the GFE will not be issued at that time, it will be mailed, and the receipt of such is not dependent on the issuing of the GFE within the next 3 days, right? That's right, see FR page 68240, 3500.7(a)(5).

#2) Block 4-if we do not allow the customer to shop for all the providers used that make up the estimate that goes in this block they do not have to be listed on the provider list, right? 12/30 FAQ #8 on page 12/13 seems to say otherwise. Right, if you don't allow them to shop, you don't have to provide a list. What #8 is saying is that if you use a different provider for settlement, itself, vs title insurance and services, you have to list both AND their FEES...but this is if you allow them to shop...or at least that's the way I read it. We don't do that, so I haven't concentrated much on it.

(We have a fee paid to the county, for a tax certificate that must be presented when recording a deed. The charge can not be shopped for. This type of fee was specifically listed in the old rules as 1100 series charge-its not covered in the new ones. Its to assure the Register of Deeds that all property taxes are paid. It is not a tax service.) My opinion on this type fee would be that it would go in the 1200 series-it's paid to the county and it's related to assuring THEM that taxes are paid

Thanks again.

We're having to provide and pay an interpreter at a closing for a loan to a hear-impaired individual. Since we're paying the fee, it will be POC. Would this fee be listed in the 1300 series?

I saw something similar to this asked earlier in this thread, but couldn't locate the answer - I did try. I've looked at the GFE instructions and the FAQs but can't find the answer there either. Hoping someone here knows as we have 3 systems all calculating it differently....

Our question relates to how to properly complete the "Summary Of Your Loan" section of the new GFE for an ARM loan - specifically, the payment fields that come at first adjustment and the maximum the payment can rise to over the life of the loan.

On Page 1 of the GFE, in the "Summary of your loan" section, the 7th box down asks: "Even if you make your payment on time, can your monthly amount owed for P & I , and any mortgage insurance rise?" On an adjustable rate loan, this will be answered "yes, the first increase can be in (#1) months and the monthly amount owed can rise to $ (#2) . The maximum it can ever rise to is $ (#3)." My questions are relating to the blanks listed as 1, 2 & 3.

Let's say it's a 5 year adjustable on a 30 year note, with caps of 1% each adjustment, 5% cap over life of loan. Rate starting at 6.00% .

Obviously #1 will show 60 months.

#2 will have a payment amount that it will be at the 5-yr (60 month) adjustment point (1% adjustment). I need to know what balance this payment is to be calculated from: the current balance at the 5 year point, or the original loan amount? The original loan amount doesn't make sense to me, but we are getting three different figures from 3 different mortgage systems and can't tell what that payment is to be calculated from. I have not been able to find guidance on this in the regulation, instructions to the GFE, or in the FAQ to provide to the vendors to tell them how it's supposed to be done.

#3 is supposed to show what the maximum monthly payment amount can ever rise to (at the ceiling). Again...what balance is to be used to calculate this payment? On that loan scenario above, the max rate is could go up to would be 11.00% over the life of the loan...what balance is used to calculate that payment?

Thank you very much for your assistance!

My mortgage dept. wants to be able to provide a potential applicant a closing cost estimate worksheet or be able to provide an applicant that has NOT selected a property a closing cost estimate worksheet. This would be a worksheet that outlines the proposed loan information like loan amount,rate, term and also provides estimates as to detailed closing costs. It of course would have language on the bottom that this is not a good faith estimate but relects estimates of charges you are likely to incur, that they are eatimates and these estimates are provided to assist potential applcants in evaluaitng financing needs, rates subject to chage, at time of applcaition you will be provided a Good Faith Estimate, etc.

What do you think? Can we give out such a documant?

::Dumb question of the day alert::

You only have to list owner's title insurance on purchase transactions, correct?

Thanks

Does anyone know the answer to this question? Sorry, this is the first exposure we've had to this type of a fee and the fact that we're required to pay it for the borrower.

David, thanks for your response. Can you direct me to where you can find the information you provided in answer #2?

Originally Posted By: FlamingoGal
I saw something similar to this asked earlier in this thread, but couldn't locate the answer - I did try. I've looked at the GFE instructions and the FAQs but can't find the answer there either. Hoping someone here knows as we have 3 systems all calculating it differently....

Our question relates to how to properly complete the "Summary Of Your Loan" section of the new GFE for an ARM loan - specifically, the payment fields that come at first adjustment and the maximum the payment can rise to over the life of the loan.

On Page 1 of the GFE, in the "Summary of your loan" section, the 7th box down asks: "Even if you make your payment on time, can your monthly amount owed for P & I , and any mortgage insurance rise?" On an adjustable rate loan, this will be answered "yes, the first increase can be in (#1) months and the monthly amount owed can rise to $ (#2) . The maximum it can ever rise to is $ (#3)." My questions are relating to the blanks listed as 1, 2 & 3.

Let's say it's a 5 year adjustable on a 30 year note, with caps of 1% each adjustment, 5% cap over life of loan. Rate starting at 6.00% .

Obviously #1 will show 60 months.

#2 will have a payment amount that it will be at the 5-yr (60 month) adjustment point (1% adjustment). I need to know what balance this payment is to be calculated from: the current balance at the 5 year point, or the original loan amount? The original loan amount doesn't make sense to me, but we are getting three different figures from 3 different mortgage systems and can't tell what that payment is to be calculated from. I have not been able to find guidance on this in the regulation, instructions to the GFE, or in the FAQ to provide to the vendors to tell them how it's supposed to be done.

#3 is supposed to show what the maximum monthly payment amount can ever rise to (at the ceiling). Again...what balance is to be used to calculate this payment? On that loan scenario above, the max rate is could go up to would be 11.00% over the life of the loan...what balance is used to calculate that payment?

Thank you very much for your assistance!

We have similar questions FlamingoGal. Did you receive a response to this that I missed? I just want to be sure it doesn't get lost.

Oh goodness, one of our ln officers forgot to mark the box for escrowing taxes and gave the GFE to the customer with the wrong amount in box 9 for the inital deposit. He called to lock the rate and she is giving a revised GFE because of the rate lock. I guess the reason "quoted the wrong init escrow amt" is not a changed circumstance...and we can't change it on the revised GFE, correct?