Sweating the new GFE?

Christa Anz

Christa Anz

Fret no more….we got you covered! As you’ve heard by now the new GFE is required for all loans as of January 1, 2010.  The new GFE 2010 class will explain the form and how information flows between the current and new GFE. You can actually complete a disclosure in your own Point file with the Calyx instructor walking you through the process, while also learning how and from where each field is populated.

Also addressed:

  • Proper use and population of the Originator field
  • Completing the Important Dates section correctly
  • Detailed instructions regarding the Escrow Account Information and related check boxes on page one
  • Clarification of fees and charges and how to enter them on page two
  • Recommended practices for Third Party Originators and meeting Regulation Z requirements
  • Explanation of various fee related categories on page three

The next GFE 2010 class is October 27 at 9 a.m. so get ahead of the game today! Visit our training schedule to sign up for this and many other helpful training classes.

18 Responses to Sweating the new GFE?

  1. Brock Cooper says:

    I was reading the updated FAQ’s released last week on the new GFE, and I had a concern about Point’s GFE. The FAQ’s specifically state that the originator is not allowed to alter the new form in order to allow for a borrower’s signature. I noticed that the GFE in Point does have a spot for the borrower’s signature. Are you guys planning on removing that before Jan 1? Or has your GFE been approved by HUD? I appreciate any help you can provide. And either way I know Calyx is doing all it can to comply with this new ever changing rule.

    • CalyxCorner says:

      Hi Brock – we were surprised as well about the statements specifically prohibiting a signature line on the 2010 GFE. We thought that we had covered all the bases by getting the form approved by HUD prior to production and release of Point 7.2, however, with these things there’s always a possibility for last minute changes.
      Because our form currently has a signature line, we will be offering a down-loadable service pack soon that will remedy this issue. As soon as we have a confirmed date of availability we will get word out to all of our customers. Thanks! Jody

  2. dave zontelli says:

    does point 7.2 have the new GFE “201O” built into it or is there a download that i must use ?

  3. Peter says:

    How do I add my email address to appear on the new GFE?


  4. Peter says:

    Thank you!

  5. Peter says:

    Can the email address be a default for every borrower?

    • CalyxCorner says:

      Hi Peter. You will need to create a borrower master file template for each originator that includes the email address you want to use. For your reference, you can find a Master Template instructions (tip sheets) on our collateral page that can walk you though it. Just scroll down to the buttons at the bottom of the page. You can call our support line at 800-342-2599 if you need additional assistance.

  6. Art Whtie says:

    I recently attended a CLE concerning the 2010 HUD and GFE. It was stated that the 10% deviation could not be altered except under “change of circumstances”. However the statement was made that in the event a material change occurred a new GFE, without “change of circumstanes” would need to be signed 3 days prior to the closing and that would remedy the problem. If that is correct why not prepare a 2010 HUD than generate the new GFE, have the borrower sign, although there is NO line for signatures on the 2010 GFE, than simply wait three days and perform the closing. If that can be done what is the site or reference concerning the 3 days versus the 10% rule?

    • CalyxCorner says:

      Good Morning Art,
      HUD requires a GFE be given to the borrower within 3 day of the completed application. The 10% or change of circumstances requirement cannot be worked around. Additionally, the signature line was purposely excluded from the GFE to meet the government guidelines. As you know, the HUD 1 is not a substitute for GFE but a different, required form to which regulations apply. It can all be very confusing. The CLE class was good idea. FAQs for the GFE and HUD 1 can be found at http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf . I recommend taking the GFE 2010 training by Calyx or signing up your office for personalized training to work through your questions and processes. Call 800.362.2599 Option 2.
      Jenny Harlowe

  7. Angie says:

    My question is does the New GFE rules apply to investment properties. We are hearing two different answers on this. Does anyone know the correct answer!

  8. Kim says:

    Does the 10% maximum deviation refer to the total amount of the fees or does it limit each line item to have no more than a 10% limit?

    In my case the title insurance increased by 20% ($275), but the total title fees only increased by 8%. The lender is taking the $275 from my commissions.

    • CalyxCorner says:

      Hi Kim. According to HUD, the tolerance applies to the total of all charges shown in the category ―Charges That in Total Cannot Increase More Than 10%. A tolerance violation of this category means that the total of all actual charges in this category exceed the total of all estimated charges in this category by more than 10%. Hope that helps!

  9. Juanita P. says:

    There is one area we can going back and forth with the title companies and compliance consultants. The attorney fee. In Illinois on a purchase transaction, the buyer will always hire an attorney to represent them at the closing. We disclose this figure on line 1107 of the Initial Fees Worksheet. All figures in the 1100 series then total in block 4 (Title SErvices). The HUD FAQ from April, 2010 states we can do this, However, the title companies are not doing this. They are posting the fee in the 1300’s series. What are your thoughts on this?

    • CalyxCorner says:

      Hi Juanita. Our interpretation of the reg would put the attorney fees, even though they are “shop-able,” in the 1100’s on the HUD-1. The HUD-1 instructions clearly state “Lines 1100–1108. This series covers title charges and charges by attorneys and closing or settlement agents…” Is this what you’re hearing from your compliance consultants?

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