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Completing the Good Faith Estimate Brokers Best Contract Loan Processing www.brokersbestcontractloanprocesing.com.

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Presentation on theme: "Completing the Good Faith Estimate Brokers Best Contract Loan Processing www.brokersbestcontractloanprocesing.com."— Presentation transcript:

1 Completing the Good Faith Estimate Brokers Best Contract Loan Processing www.brokersbestcontractloanprocesing.com

2 Good Faith Estimate (GFE) The originator must provide a GFE within three business days of receiving an application Application means: Borrower Name Borrower Income Borrower Social Security Number Property Address Estimate of property value Desired Loan Amount

3 SSPL Lenders will be required to provide the borrower with a Settlement Service Provider List (SSPL) that includes settlement service provider names This pertains to any settlement service where the service is required but the borrower can select a provider The list must include at least one company per service

4 Fee Tolerances Charges that cannot increase at settlement: Origination charges including the loan originator fees and broker compensation Discount or credit for a specific interest rate locked Adjusted origination charges after the interest rate is locked Transfer Taxes

5 Fee Tolerances Charges that cannot increase in the aggregate by more than 10% at settlement: Required settlement services that the lender selects Title services and lenders title insurance if selected by the lender or if borrower uses a company identified on the SSPL Owners title insurance if borrower uses a company identified on the SSPL Required settlement services (such as pest inspections) if borrower uses a company identified on the SSPL Government Recording Charges

6 Fee Tolerances Charges the can increase at settlement: Required settlement services that the borrower can select, if the borrower selects a service provider not listed on the SSPL Title services and lenders title insurance, if the borrower selects a service provider not listed on the SSPL Owners title insurance, if the borrower selects a service provider not listed on the SSPL Initial deposit for borrower escrow/impound account Daily interest charges Homeowners insurance

7 Page 1 Originator Information Name of Originator Company Name Required Individual Originator Name Optional Originator Address Office Address Originator Phone Number Office Phone Number Required Individual Originator Phone Optional Originator Email

8 Page 1 Important Dates The interest rate is available through Date and Time Settlement Charges must be available for a minimum of 10 days from the date of GFE Number 3 N/A if rate is floating Enter # of days of lock period minus 4 business days if rescindable transaction Enter # of days of lock period minus 1 business day for all other transactions Enter 7 days before settlement rate must be locked

9 Page 1 Summary of Your Loan Initial loan amount Including UPMIP, VAFF, or USDA Guaranty Fee Loan Term Initial Interest Rate Note Rate at time of closing Initial Payment P&I + mortgage insurance

10 Page 1 Summary of Your Loan Can rate rise? Yes, if ARM Can loan balance rise? No Can payments increase? Yes, if ARM Prepayment penalty? No Balloon payment? Yes, if balloon program

11 Page 1 Escrow Account Information Complete the amount owed of $ Enter the P&I + monthly MI(P) in the box Check Yes or No whether the escrow/impound account is required

12 Page 1 Summary of your Settlement Charges This is a summary carried over from page 2 of the GFE Complete Box A, Box B and Box A + B

13 Page 2 Our Origination Charge – Wholesale Transaction All Lender and Broker Charges Disclosed Together Origination Fee(s) Mortgage Broker Fee Admin Fees Processing Fees 203K Supplemental Origination Fee Underwriting Fee Lender Compensation to Broker (YSP) Doc Prep Fees Subject to Zero Tolerance Disclose accurately as you will not be allowed to make any changes

14 Page 2 Our Origination Charge Retail Transaction All Lender and Broker Charges Disclosed Together Origination Fee(s) Admin Fees Processing Fees 203K Supplemental Origination Fee Underwriting Fee Doc Prep Fees Disclose accurately as you will not be allowed to make changes even if you have to broker the loan to another lender

15 Page 2 Credit or Charge First box is only completed if the loan is a retail transaction and there is no credit to the borrower for closing costs and no discount points charged for the rate Second box is completed on wholesale transactions and must match the lenders pricing if loan is priced with YSP Second box is completed on retail transactions if the borrower will receive a lender credit at closing to pay closing costs Third box is completed for wholesale or retail transactions and must match the lenders pricing if loan is priced with discount Third box is completed if there is a temporary buydown on the transaction

16 Page 2 Your Adjusted Origination Charges Box A represents the total of Box 1 Your Origination Charge Minus the amount of credit OR Plus the amount of discount Carry this amount forward to Page 1 Summary of your settlement charges

17 Page 2 Block 3 Required Services Required services that the lender or broker select Appraisal Credit Report Lenders Inspection/Final Inspection Upfront MIP VA Funding Fee Rural Housing Guaranty Fee Mortgage Insurance Premium MERS Flood/Life of Loan Tax Service Subject to 10% tolerance

18 Page 2 Block 4 Title Services Title/Closing/Settlement Title Insurance – Lender Coverage Title Guarantee Title Endorsements Title Search Name Search Doc Preparation/E-mail print Fee Settlement Fee Attorney Fee Courier, messenger, overnight delivery Recording Service Fee Subject to 10% tolerance if service selected from the originators SSPL

19 Page 2 Block 5 Owners Title Insurance Owners Title Insurance Title Insurance – Owner Coverage Subject to 10% tolerance if service selected from the originators SSPL

20 Page 2 Block 6 Required Services Required services that the borrower can shop for Include at least 1 company on your SSPL Inspections Pest Well/Septic Certifications Survey Counseling Fee for Reverse Mortgage Subject to 10% tolerance if service selected from the originators SSPL

21 Page 2 Block 7 Recording Fees Government Recording Fees Recording Fee – Transfer Deeds Recording Fee – Mortgage/DOT Recording Fee – Trust Recording Fee – Power of Attorney Subject to 10% tolerance

22 Page 2 Block 8 Transfer Taxes Transfer Taxes City/County/Tax/Stamps State Tax/Stamps Intangible Tax Residential Mortgage Loan Fee Mortgage Tax Subject to zero tolerance Find out what the tax stamps will be before you issue your GFE

23 Page 2 Block 9 Deposit for Escrows Initial deposit to establish the escrow/impound account Property Taxes Hazard Insurance Mortgage Insurance Not subject to tolerance

24 Page 2 Block 10 Interest Daily Interest Charge Per Diem Estimated # of days Estimated Settlement date Not subject to tolerance

25 Page 2 Block 11 Insurance Homeowners Insurance Hazard Flood Wind Must include at least one company on SSPL Not subject to tolerance

26 Page 2 Total Estimated Charges Block B Total of charges disclosed in blocks 3 – 11 Carry over to page 1 A + B Total Estimated Settlement Charges Carry over to page 1

27 Page 3 Using the Tradeoff Table Complete all the fields in the left column The loan in this GFE Complete the other 2 columns at your option

28 Page 3 Shopping Cart Complete all fields in the left column This loan The borrower may use the other columns to shop and compare


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