I've been asked a few times recently what happens if the Good Faith Estimate is inaccurate or never provided after origination. RESPA requires certain initial disclosures, some of which are included in the GFE. The law requires they be sent out within 3 days of application. Noticeably silent is a requirement that they are signed or acknowledged. Most brokers/lenders have the borrower sign it because it is a great way to protect them down the road in case someone claims they did not get it. Most lenders require it as part of their underwriting from the Broker just to be safe. Largely though, as with many laws that affect Mortgages, their is not necessarily a civil right of action. In other words, the government can pursue the culprit, but individuals cannot. Thats not to say that you could not use the violation as part of a state law claim, (unfair deceptive and practices act, etc.).
As for the GFE not being accurate, truthfully it would be hard for the initial GFE to be accurate. Its just too early for the broker/lender to know all the details. It should be redisclosed though as soon as it is known to be inaccurate, and definately before closing. We have argued in our cases that a severely inaccurate initial GFE is evidence that a broker/lender was defrauding the borrower. Interesting topic.
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This should not be construed as creating any attorney/client relationships, or the providing of legal advise to anyone.
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