U.S. Bank Home Mortgage Procedures for Issuing the Initial GFE The Broker will be responsible for issuing the initial GFE to the borrower. Submit a copy of the initial GFE with the Transmittal for Early TIL. –The GFE will be reviewed to insure it was issued on the proper form within 10 general business days prior to the date of the 1003, or within 3 general business days after the date of the 1003. GFEs not issued on the proper form or within prescribed timeframes will not be accepted, the broker will be notified, and the loan will be ineligible for funding. –If the GFE is accepted and the rate is locked, USBHM will insure that the loan terms in the system match those on the GFE. If not, the broker will be notified and will be required to update the system to reflect the terms disclosed to the borrower.
U.S. Bank Home Mortgage Procedures for Changed Circumstances For each Changed Circumstance, the Broker must provide the following to USBHM within 3 general business days of notification of the Changed Circumstance: –Copy of the Revised GFE issued to the Borrower –Transmittal for Revised Good Faith Estimate Form –Written documentation supporting the changed circumstance USBHM will review the documentation for validity and, if accepted, will issue a corrective TIL (if needed.) If not acceptable, the broker will be notified that the loan is not eligible for funding; or is eligible for funding at the terms of the last accepted GFE. Rate locks constitute a Changed Circumstance.
Know it all. HUD-1 Page 3: Loan Terms Keep an eye out for the following: –The amount that the interest rate can increase may not be the same as the amount that the interest rate can decrease. –The maximum payment amount should be calculated in the same manner as the ARM program disclosure maximum payment amount – the rate may increase or decrease by so many percentage points.
U.S. Bank Home Mortgage Procedures for Loan Closing Complete the Closing Request Form and fax to your assigned Operations Center. The Closing Request will be reviewed against the last GFE accepted by USBHM and the loan terms in the system, to insure that the loan terms match. In preparing the HUD-1 items for the Settlement Agent, USBHM will review the settlement charges: –Review of Service Providers used against the Service Provider list to determine if 10% tolerance applies –Review all fees against the last GFE accepted by USBHM to determine that fees match and/or are within prescribed tolerances.
U.S. Bank Home Mortgage Procedures for Loan Closing In the event that fees are out of tolerance: – USBHM will request that the settlement agent change the fees on the HUD-1 accordingly –Funds wired will be adjusted to match the revision –This may result in reduced compensation to the broker