Finding your way through the new GFE almost requires a detective to help identify the twists and turns, what can change and, which fees are set in stone, unless, of course, it falls under one the exceptions..... As most of you already know, the new rules require mortgage originators to lump the origination costs - including the interest rate and underwriting fees - under one bundled fee on the GFE; once lenders receive GFE's from mortgage brokers, they have to accept the charges.
However, not all costs on the GFE are locked in; charges affected by "changed circumstance" can be modified as needed, but the loan originator must issue a new GFE, and only the fee subject to the "changed circumstance" can be altered.
Another class of charges is subject to a 10% tolerance, which gives those fees a little room to vary from the original estimates. Among these charges are title insurance fees, as long as the borrower uses the title company listed by the mortgage originator. If the buyer chooses a different company, there's no restriction on how much the charge can change at closing.
So far, it's still a little confusing getting to closing; many people on all sides of the transaction are having difficulty with the new GFE format, rules and exceptions. What have been some of your experiences? Suggestions?
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA 22207
703-538-2566
davidrose@mris.com
www.HighlandAgents.com
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