My Post yesterday focused on the the three categories of costs that may or may not change once the New Good Faith Estimate 2010 Form is issued. These three categories are costs that Cannot Change, cost that Can Change by 10%, and costs that can Change at Settlement.
The first category of Costs that Cannot Change on the New Good Faith Estimate 2010 Form is pretty self explanatory, but the other two categories can change so in this Post I want to go into what constitutes a reason for change, and some examples of what they might be.
HUD’s Definition For Changed Circumstances
- Acts of God, war, disaster or other emergency
- When information particular to the borrower or transaction is found to be different or inaccurate
- When new information particular to the borrower or the transaction is provided
- Borrower requested changes
- Or when other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problem
Some Common Examples Of A Changed Circumstance:
- Adding or removing mortgage insurance
- Adding or removing borrowers
- Property under appraises
- Credit score changes
- Addition of service like an additional inspection, additional appraisal or certification
- Property uses changes - owner occupied to investment
- Wrong property address
- Property type change - SF, condo, 2-4 Family
- Loan amount or down payment amount change
- Transaction purchase changes – purchase to refinance
- Changing the rate or points
- Rate extension
- Loan program change
- Documents signed by a Power of Attorney
- Borrower changing from standard to extended coverage owner’s title policy
- Borrower does not proceed to closing quickly
If a Change of Circumstance which require a change in the costs on the original New Good Faith Estimate 2010 Form, these changes MUST be redisclosed on a new Good Faith Estimate within 3 business days of LEARNING THE NEW INFO or BORROWER REQUESTED CHANGE
Links to the other blogs in this series:
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Info about the author:
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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