Lenders Beware! The new gfe rules can cost you!

By
Mortgage and Lending with FHA, VA, Conforming, Jumbo - Wells Fargo Home Mortgage

Well, I'm starting the year with a bang!Bomb

As most of you know, the new GFE rules have taken effect. Well, it turns out they can be costly as we trip over all the new proceedures involved with these rules. My first bump in the road is going to cost me some money.

Here's the situation: The purchase contract shows the selling lender paying the transfer taxes but the short sale addendum that's 20 pages long states the selling lender will not pay the transfer taxes in two sentences and 8 point type.

We received the purchase contract from the realtor with the addendum to follow. Client converted preapproval to real deal, locked rates which started the GFE clock for disclosures. We disclosed everything under the sun to borrower within 48 hours of application per new rules. Realtor gives us short sale addendum signed by lender the next day that states lender will not pay transfer taxes.

The transfer tax category has a zero change tolerance so we can't re-disclose this fee to the borrower. Since borrower wasnt' given the fees, they don't have to pay, lender pays! So, from my world to yours, look out! I hope this short post helps save someone money.

Posted by

____________________________________________________________________________________________________

Anthony Ebright NMLSR ID #247647

Home Loan Officer / FHA and VA Specialist

707-548-0752

 

____________________________________________________________________________________________________

You can reach Anthony Ebright at 707-548-0752 if you need help refinancing or purchasing your home in Sonoma County, Santa Rosa, Healdsburg, Petaluma, Rohnert Park, Sebastopol, Bodega Bay, Windsor, Cloverdale, Guerneville, Sonoma.

 

 

Anthony Ebright is a Home Loan Officer in Santa Rosa, California. His opinions and statements are his own. Wells Fargo does not endorse any comments made by its employees on this blog. All statements and viewpoints expressed in the comments are strictly those of the commenter alone, and do not constitute an official position of any lending institution.

 

Copyright 2009. © Anthony Ebright. All rights Reserved.
NMLSR ID #247647
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Rainer
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Sherry Siegel, Managing Broker, EcoBroker, ABR
BrokersGroup, serving Sequim and Port Angeles - Sequim, WA

Glad our office will get a major presentation by a mortgage office about a week from now. I'll send a link to this post to that office and ask them to speak to this as well. I have a short sale listing. Your post caught me on the "before contract" side of things.

Jan 15, 2010 01:15 AM #1
Rainer
214,124
Anthony Ebright - NMLSR ID #247647 Purchase and Refinance Mortgages
FHA, VA, Conforming, Jumbo - Wells Fargo Home Mortgage - Santa Rosa, CA

Sherry, I'm glad to know my costly experience will help save others from doing the same! Thanks for passing the information on!

Jan 15, 2010 02:16 AM #2
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Rainer
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Anthony Ebright - NMLSR ID #247647 Purchase and Refinance Mortgages

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