completing the good faith estimate brokers best contract loan processing
TRANSCRIPT
Completing theGood Faith Estimate
Broker’s Best Contract Loan Processing
www.brokersbestcontractloanprocesing.com
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
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
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
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 lender’s title insurance if selected
by the lender or if borrower uses a company identified on the SSPL
Owner’s 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
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
Owner’s title insurance, if the borrower selects a service provider not listed on the SSPL
Initial deposit for borrower escrow/impound account
Daily interest charges Homeowner’s insurance
Page 1Originator 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
Page 1Important 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
Page 1Summary 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
Page 1Summary 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
Page 1Escrow 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
Page 1Summary 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
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
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
Page 2Credit 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
Page 2Your 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
Page 2Block 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
Page 2Block 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 originator’s SSPL
Page 2Block 5 Owner’s Title Insurance
Owner’s Title Insurance Title Insurance – Owner Coverage
Subject to 10% tolerance if service selected from the originator’s SSPL
Page 2Block 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 originator’s SSPL
Page 2Block 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
Page 2Block 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
Page 2Block 9 Deposit for Escrows
Initial deposit to establish the escrow/impound account Property Taxes Hazard Insurance Mortgage Insurance
Not subject to tolerance
Page 2Block 10 Interest
Daily Interest Charge Per Diem Estimated # of days Estimated Settlement date
Not subject to tolerance
Page 2Block 11 Insurance
Homeowner’s Insurance Hazard Flood Wind
Must include at least one company on SSPL
Not subject to tolerance
Page 2Total 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
Page 3Using the Tradeoff Table
Complete all the fields in the left column The loan in this GFE
Complete the other 2 columns at your option
Page 3Shopping Cart
Complete all fields in the left column This loan
The borrower may use the other columns to shop and compare