Revisions to GFE

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Question:

If a customer chooses to float their interest rate and it is set 7 days prior to closing, if it increases from application do we need to prepare a revised GFE? I know if the APR is over/under tolerance of .125% we would redisclose that.

Answer:

The only time you are required to issue a revised GFE (as long as you are willing to live with the fees disclosed) is when the consumer exercises a rate lock option. The financial institution setting the rate for closing is not the same as the consumer exercising a rate lock option.

First published on BankersOnline.com 2/28/11