Understanding the new GFE

HUD’s final RESPA Rules, issued November 17, 2008, made sweeping changes for the lending community.  Some of the requirements actually went into effect earlier this year, but many are not required until January 1, 2010.

Of the RESPA rules that go into effect in January, there are a few critical changes that require careful consideration and adjustments within the loan origination process, including a new GFE form.

Some of the most significant changes include:

  • The GFE is revised to an official three page form that summarizes costs.   Line item detail is not included in this form.
  • Lenders and mortgage brokers may only charge for fees related to obtaining the applicant’s credit report, prior to the borrower’s receipt of the disclosure.
  • In addition to the GFE, mortgage companies must provide a list of required services borrowers may shop for, affirmatively identifying the service providers they recommend. The list must be provided at the same time the GFE is issued.
  • The new HUD-1/1A forms require the charges from the GFE to be directly compared to the actual charges assessed at settlement and listed on the HUD-1/1A.

Look for compliance updates for the GFE in both Point 7.1 and 7.2.  The current GFE form will be available for use until January 1 and will remain active within the program for cost itemization after the revised form becomes mandatory.  In future releases the “old” GFE will be phased out and replaced by an improved screen to help users complete the GFE more efficiently and with better compliance controls.

Learn more about GFE 2010 with Calyx Training.

3 Responses to Understanding the new GFE

  1. Martin says:

    Hello, can anyone please help me and tell me where in Point do we input the originator’s email address so it does appear on the new GFE 2010 page 1 on top?

    Thank you

    • CalyxCorner says:

      Hi Martin. From the Main Menu within the borrower file, go to “Track Agent” and select the originator name from the drop down. You can then add the email address. Hope that helps. BJ

  2. Martin says:

    Thank you, that solved my problem and I will pass that information to others in my company.

    Thank you again

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 58 other followers

%d bloggers like this: