Answer:
Answer by David Dickinson: If you do not escrow, you should not show taxes and insurance in the escrow section of the GFE. The Servicing Disclosure no longer has to be signed because the law changed in 1997 and the regulation changed to supported this effective 1/16/09.
Answer:
Answer by Jim Bedsole: You would not show any estimate for taxes and insurance in the escrow section (Section 1000). However, you should show an estimate of the amount of the annual taxes and insurance premium in the items required by the lender to be paid in the advance section (Section 900). Typically in a refinance you would show these as POC. In a purchase money transaction, these will be collected by the closing agent at closing. In the new HUD GFE form which goes into effect later this year, the hazard insurance would be shown in Section B, Item 11. There isn't a spot that fits to disclose the property taxes so I don't know what to recommend there.First published on BankersOnline.com 5/04/09
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