#WhackedOutWednesday – Estimate of Fee’s need to be made in “Good faith”! Hence why it was called a GFE in the past. The new name is Loan Estimate, the concepts of the fee’s are the same. The rules of what can change, what can NOT change and what fee’s have a 10% tolerance have been updated, but the consensus is the same. Nothing changed in how you should be putting together your estimates. Know this stuff!
Below I will place the current chart that breaks down each section, however there are somethings worth noting. A notable mention is the transfer taxes, go high on purpose. You don’t need to over estimate 1000’s of dollars, but to add a few hundred just in case is ok. Another notable is the SSPL, or Settlement Service Providers List, and how these fee’s labeled with a companies name in the beginning work. Know how using a different company can be loop hole to fee variances. Know how to calculate per diem interest and how to set up an impound account. While certain things can change, there’s a best practice to be more accurate than ever before now.
Below is the current FEE chart, that breaks down the various “areas” on the LE as to what can change, what can NOT change and what has a 10% tolerance. Know this, and get good at making estimates. Yes, you want to under promise and over deliver, but “Fee’s” in general need to be more accurate in the act of Loan Origination than ever before. The CFPB doesn’t want you way over disclosing and then making it a habit to reduce fee’s later on. They want you to make an estimate “In Good Faith”