KnowYourPro

How do the other mortgage professionals plan on dealing with the new GFE come January? Is there already a Calyx Point update available? Now is the time to start addressing this.

The most recent version of Calyx has both the GFE (reg) and GFE (2010). Not sure what to address. Will have to get a new schpeil of why I am adding my YSP and giving a credit for the same amount.

We use ellie Mae Encompass. They are offering several training dates thoughout the end of the year. When there are changes that will effect the original GFE, the new disclosure program will give alerts when a new GFE needs to be issued. Haven't taken the class yet. I'm sure there are more safeguards built into the program. Point should be about the same.

Most lenders will not accept the new GFE at this time.

With all the disclosing and such, I would expect 30 day locks to not be an option at application anymore. I've also heard that Wells is upping their lender fees to $2k (not sure if retail or wholesale) just because. With the tolerance level, i would figure that everyone will be upping their estimates. how this helps the borrower, I do not know. another lesson in the rule of unintended consequences.

I have totally had my head in the sand regarding this new GFE. I don't understand this whole disclose the YSP but credit it back stuff. Help...................

Lets say the closing costs are $3000, the escrows are $2000, and you are going to make $3000 in YSP. You will show a grand total of $8000 in costs and will credit the borrower back $3000. Its a shuffle. Worse is the fact that the 800 fees are now combined into one lump sum.

Mortgage Transaction Fees More Closely Regulated

Beginning January 1, 2010, the U.S. Department of Housing and Urban Development will require that lenders and mortgage brokers provide consumers with a more consumer-friendly version of the Good Faith Estimate (GFE) form that clearly discloses key loan terms and closing costs.

The revised Good Faith Estimate will consolidate closing costs into general categories to prevent miscellaneous fees, and display total estimated settlement charges on the first page so the consumer can easily compare loan offers.

HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change. Charges that cannot change include the lender's or broker's mortgage origination, processing and underwriting charges, and the lender's or broker's loan discount charge or "points" based on the interest rate quoted to the borrower, and local transfer fees.

Borrowers are supposed to receive their Good Faith Estimate within three days of applying for a loan.

Corresponding with the new GFE rules will be a new standard "HUD-1" closing cost statement. Unlike the current settlement statements, the new HUD-1 is connected to the GFEs to facilitate a line by line comparison between the HUD-1 and the GFE so borrowers can easily compare their estimated and actual costs.

One of the primary purposes of the new HUD is to improve upfront disclosures on the GFE, and limit the amount estimated charges can change. It is anticipated that these changes will help consumers save nearly $700 in closing costs.

HUD will allow lenders and settlement service providers to correct potential violations of RESPA's new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.

I spoke with someone at Calyx Point yesterday who said they will still have a "Fee Worksheet" in the system that can be sent out instead of a GFE for mortgage shoppers. With the new rules regarding what is necessary to send a GFE this will be helpful to have.