Please confirm RESPA GFE Law - Posted by Sarah

Posted by Sarah on August 18, 2005 at 10:23:14:

Thanks so much to both of you for your clear information. I appreciate your time and help on this matter.


Please confirm RESPA GFE Law - Posted by Sarah

Posted by Sarah on August 11, 2005 at 12:37:02:


My lender recieved a mortgage application signed and dated 06/04/05 but did not send Good Faith Estimate until after loan officer signed and dated it 07/11/05.

HUD website states that lenders are required by law to provide GFE no later than 3 days after date of signing of application.

  1. Can anyone confirm this law?
  2. Can anyone advise on what my rights are to request my application fee back for non-compliance with federal law?
  3. Can anyone advise on how I should approach my lender under these circumstances?

I have not signed and returned the GFE and therefore have not entered into a loan agreement with this lender.

Thank you.

Re: Please confirm RESPA GFE Law - Posted by Max-va

Posted by Max-va on August 11, 2005 at 13:51:35:

Yes it is true all loan documents must be dated to within 3 days of each other. Call your lender/broker and point this out. The computer program that generates these forms dates it current date when you make changes or corrections. The loan officer forgot to manually change this. The complaince department would have caught it and you would have to resign at somepoint or at the closing table at the latest.

Re: Please confirm RESPA GFE Law - Posted by River City

Posted by River City on August 12, 2005 at 06:59:41:

The money your lender collected from you goes to pay for your credit report and appraisal. This is hard money spent. If they collected too much, it would be refunded at closing, or in the case of a terminated application, they generally refund the overages. If they don’t, you can request that they refund the overages. If you are dealing with a reputable mortgage company, they will refund the overages.

“RESPA” does not require your signature on the Good Faith Estimate, nor does your signature on the GFE constitute an agreement with the lender. All it does is acknowledge receipt of the document.

RESPA does not address its enforcement in a consistent fashion. It provides penalties in certain sections and fails to mention remedies for violations in others. Section 5 is one of the sections for which it fails to mention penalties and violations. Section 5 is the section for the Good Faith Estimate.

Most “experienced” loan officers/originators prepare the GFE during the loan application process. In my opinion, those that do not are inexperienced and do not trust themselves to prepare an accurate GFE. It should be prepared during the application process so the loan officer can answer any questions the applicant may have regarding how they arrived at the figures.

If you wish to report your lender for the violation, you can report them to the U.S. Department of Housing and Urban Development in Washington, D.C., as well as to the lender’s State agency that has responsibility for regulating the settlement providers engaged in this practice.