RESPA Jeopardy - BankersOnline.com
www.BankersOnline.com 12/2009
Application GFE
www.BankersOnline.com 12/2009
HUD-1
Chng Cir/
Tolerance
What is the Good Faith Estimate?
This must be provided no later than 3 business days after receipt of the application.
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How long must the terms of the GFE be available for?
10 business days
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What is POC?
Although the term is not used on the GFE under the new rules, this term is still used on the
HUD-1 for lender paid fees.
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What is the tolerance for origination charge, points, adjusted origination charges transfer taxes?
Zero Percent
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What are the 6 pieces of information required for a
RESPA application?
Name, SSN, Property Address,
Estimated Value of the Property,
Income, Loan Amount
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What is a written list of identified providers?
This must be provided with the GFE when the borrower can shop for certain 3 rd party service providers.
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What is a revised HUD-1?
You have 30 calendar days after settlement to do/provide this.
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What total of charges have a 10% tolerance?
Government recording charges, title services (if title company from our list), services we select, lender’s title insurance, required services from our list that the borrower can shop for.
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What is the property address?
This must be on the application now (or provided to lender) prior to providing the GFE (we used to issue a GFE without this if we had an application).
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What are property taxes, estimated funds to close, POC, signature lines? (any of these is a good answer)
This is no longer provided on the GFE.
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What is a blank line in the 1300 series?
If the borrower chooses to obtain a survey not required by the lender or the title company, the charge gets listed on this line of the HUD-1.
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What is NOT a changed circumstance?
An inadvertent error (i.e. typo) on the Good Faith Estimate.
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What is the credit report fee?
This fee can be collected with the application prior to providing the GFE to the applicant.
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What is the owner’s title policy?
This MUST be listed on the
GFE although in a purchase transaction it may not always be paid for by the borrower.
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What is an off-setting credit on lines 204-209? (fee goes on appropriate line, then credit back on lines 204-209)
When the GFE indicates a fee payable by the borrower that is later payable by someone else
(other than a no cost loan), this fee is itemized this way on the HUD-1.
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What IS a changed circumstance?
After a GFE is issued, it is determined that an add’l service is required (i.e. termite treatment, survey, upgraded appraisal, septic or well inspection).
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What is intent to proceed?
After receiving the application, the loan originator must receive this from the applicant (after GFE provided) before it may collect fees
(other than cr. rpt.), and before requesting verification documents.
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What is a revised GFE?
When you provide the GFE, but the rate is not locked, and you lock the rate at a later date, you must provide this once the rate is locked.
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What is a credit in the 200 series of the HUD-1 (or what is a POC on the specific line item)?
Where you list a correction on the HUD-1 due to a tolerance violation.
5,3 www.BankersOnline.com 12/2009
What is NOT a changed circumstance?
Appraiser raises all of his fees across the board. They are higher than what you disclosed on the GFE to a number of borrowers.
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