Topic: Good Faith Estimate (GFE)
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If we received a loan application that does not include a loan amount or an estimate of the value of the property to be a purchased, is that application considered complete? If so, do we have to issue a GFE?
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Without an estimate of the value of the property and the mortgage loan amount sought, the information you received from the customer is not sufficient to constitute an application. The RESPA regulations state that an “application” must include, in addition to the information you were provided, “an estimate of the value of the property, the…
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If we discover a violation of zero tolerance item (a Freddie Mac fee) on a good faith estimate (GFE), and more than thirty days have passed, what should we do to correct the violation?
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Because it has been more than thirty days since the zero-tolerance violation you identified, refunding won’t cure the violation. That said, you are bound by the GFE, and it would probably be best practice to refund to mitigate any arguable penalties for the violation. 12 CFR 1024.7(f).
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When we provide borrowers with a written list of settlement service providers (as required by RESPA), should the list include all service providers in our entire region, or can we provide county-specific lists to customers, with different lists for each county?
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While RESPA requires loan originators to provide borrowers with a “written list of settlement services providers at the time of the GFE, on a separate piece of paper” (24 CFR Appendix C—Instructions for Completing Good Faith Estimate (GFE) Form), we are not aware of any laws or regulations that touch on the format of such…