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Change Circumstance/Tax Stamps on Initial GFE

Answered by: 
Patricia Cashman

Question: 
The tax stamps amount changed on the initial GFE because the Lender did not carefully read the P & S, so the lender did a change circumstance, so she could change the fee for the state tax stamps. Is this allowed?
Answer: 

No, this is is not allowed. Lender "error", "oversight", or whatever you choose to call this is never an "out" to call for a revised GFE. Page17 of the April 2, 2010 HUD FAQs, states "None of the information collected by the loan originator prior to issuing the GFE may later become the basis for a "changed circumstance" upon which a loan originator may offer a revised GFE, unless the loan originator can demonstrate that there was a change in the particular information or that it was inaccurate, or that the loan originator did not rely on that particular information in issuing the GFE."

First published on BankersOnline.com 4/29/13

First published on 04/29/2013

Filed under: 
Compliance
Filed under compliance as: 
HUD
IT

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