Posted by: Roby Robertson | January 28, 2010

Lake Norman – New Good Faith Estimate-HUD 1 Key Points

As you are aware there have been tremendous changes to the Good Faith Estimate(GFE) that took effect January 1st, 2010.
Key Points of New GFE/ HUD-1
  • Borrower must have 7 business day from initial disclosures to close
  • Lender cannot collect Appraisal fee until the disclosures are signed (GFE and Til)
  • If GFE changes, borrower must receive 3 business days after re-disclose prior to closing
  • Certain fees on the GFE can only change under specific “Change Circumstances”
  • Origination fee/ Discount Points
  • 10% Tolerance: Requires services the borrower selects from a list the lender provided

Page Three of HUD-1 will compare the GFE to the actual closing costs. If out of tolerance, the lender will be forced to refund any funds to bring figures into acceptable tolerances.

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