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#1915100 - 04/16/14 07:39 PM GFE Box #3
trying_to_comply Offline
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Joined: Feb 2011
Posts: 146
I wanted to get some opinions on this scenario:
An LOS error at application (and missed by the MLO) results in box three of the GFE not reflecting the itemized charges (Credit Report, Appraisal, Tax service fee, etc) and the GFE is issued to the borrower. The total dollar amount of all services is correctly populated in the fee column on the right side of page 2 of the GFE. In my opinion, while a total dollar amount for the fees is disclosed, the borrower cannot be charged for them at closing because the fees have not been itemized.

Agree or disagree?

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#1915111 - 04/16/14 08:11 PM Re: GFE Box #3 trying_to_comply
#Just Jay Offline
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#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
I could make a case either way. Technical violation yes, free/reimbursable, IMO, no. I'd fight and argue it.

It's going to come down to your risk appetite of the file being pulled for an audit/exam review, the saviness or even care of your borrower if they understand what was wrong, against the value of those services and what your bank may be willing to part with fee wise.
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#1915114 - 04/16/14 08:18 PM Re: GFE Box #3 trying_to_comply
raitchjay Offline
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Joined: Oct 2009
Posts: 9,381
OK
I'd come down more on the side of entering zeroes on the GFE side of the comparison chart on this one (where you'd basically pay 90% of the fees in the 10% tolerance category). The GFE apparently wasn't late, it just was filled in with nothing in Block 3 of page 1. To me, it would be a tough argument to make that "well, the total was on page 2". Just my opinion.
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#1915117 - 04/16/14 08:25 PM Re: GFE Box #3 trying_to_comply
raitchjay Offline
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Joined: Oct 2009
Posts: 9,381
OK
Ok...maybe i am misreading or misinterpreting the original post.....if you are saying that there IS a charge listed in the COLUMN on page 3, there is just nothing to the left of the column ("credit report", "appraisal") etc., then i would moreso agree with what JJ is stating. Sorry if i misinterpreted.
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#1915128 - 04/16/14 08:43 PM Re: GFE Box #3 trying_to_comply
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,886
Bloomington, IN
Block 3, “ Required services that we select. ”—In this block, the loan originator must identify each third party settlement service required and selected by the loan originator (excluding title services), along with the estimated price to be paid to the provider of each service. Examples of such third party settlement services might include provision of credit reports, appraisals, flood checks, tax services, and any upfront mortgage insurance premium. The loan originator must identify the specific required services and provide an estimate of the price of each service. Loan originators are also required to add the individual charges disclosed in this block and place that total in the column of this block. The charge shown in this block is subject to an overall 10 percent tolerance as described above.


IMO regardless if you threw some dollar figures in Block 3 you did not properly and accurately disclose and identify the fees. IMO you have a cure situation. $0 in GFE column of the comparison chart and the actual charge in the HUD column.
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#1915138 - 04/16/14 09:03 PM Re: GFE Box #3 Dan Persfull
trying_to_comply Offline
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Joined: Feb 2011
Posts: 146
Originally Posted By: Dan Persfull
Block 3, “ Required services that we select. ”—In this block, the loan originator must identify each third party settlement service required and selected by the loan originator (excluding title services), along with the estimated price to be paid to the provider of each service. Examples of such third party settlement services might include provision of credit reports, appraisals, flood checks, tax services, and any upfront mortgage insurance premium. The loan originator must identify the specific required services and provide an estimate of the price of each service. Loan originators are also required to add the individual charges disclosed in this block and place that total in the column of this block. The charge shown in this block is subject to an overall 10 percent tolerance as described above.


IMO regardless if you threw some dollar figures in Block 3 you did not properly and accurately disclose and identify the fees. IMO you have a cure situation. $0 in GFE column of the comparison chart and the actual charge in the HUD column.


That's what I'm thinking.

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