topic Re: GFE Review in Mortgage Loans

GFE Review

eddymvp — Fri, 24 Apr 2009 00:39:09 GMT

I just got my GFE today from the lender after signing 20+ forms.

This is what they gave me.

Im getting a FHA 5.5% 30 year loan for a home that cost 220,000.....Im putting 3.5% down and seller putting 5,917 towards closing cost.

803 Appraisal Fee 475.00

804 Credit Report 50.00

808A Morgage Broker Fee @ 1.000%+ 2160.15

809A Tax Service Fee 65.00

810A Processing Fee 350.00

813A Flood Cert. Fee to Franklin Ameri 8.00

814A Courier/Overnight Fee to ATTY. 50.00

815A Wire Fee to Franklin American 25.00

816A Admin Fee to Franklin American 595.00

817A Property Inspection Waiver Fee 50.00

824 Yield Spread Premium to Interate Mortgage 2.000% $4,320.30

901A Prepaid Interest 19 days @ 33.0023 $627.04

902A Mortgage Insurance Premium 3,715.25

903 Hazard Insurance Premium $1,200.

1102 Abstract or Title Search 200.00

1104 Title Insurance Binder 35.00

1107A Attorney Fee 500.00

1108 Title Insurance Fee 594.00

1109A Run Down Fee to Attorney 50.00

1201 Recording Fee 470.00

1301 ASurvey to: 150.00

1303 Municipal Lien fee 90.00

1001 Hazard Ins 2 mths @ 100 = 200.00

1002A Mortgage Ins mths @ 97.30

1004 Property Tax 2mths @ 263.85 = 527.70

Message Edited by eddymvp on 04-21-2009 08:00 PM

Message Edited by eddymvp on 04-23-2009 08:39 PM

Re: GFE Review

ShanetheMortgageMan — Wed, 22 Apr 2009 01:56:28 GMT

Oof... if your score is 620+ not good at all. Should be more like 5% with 0 points/origination/mortgage broker fee.

Re: GFE Review

eddymvp — Wed, 22 Apr 2009 02:01:58 GMT

My mid score is 660. Where can I find the info about the 5% to send it to my loan officer?

Re: GFE Review

ShanetheMortgageMan — Wed, 22 Apr 2009 02:08:47 GMT

#1, if they didn't offer you more competitive terms in the first place but would only after you showed them you could get better terms elsewhre, why would you want to continue working with them... and #2, you'd find the information you are looking for from another loan officer who isn't out to fund his college education with 1 loan. Was your situation near impossible or something? Locking the rate for 180 days?

Re: GFE Review

Anonymous — Wed, 22 Apr 2009 02:17:45 GMT

I would steer far away from Franklin American. I had never even heard of them before, but recently two folks on the forum have had trouble with their loans and FA was the lender.

Re: GFE Review

eddymvp — Wed, 22 Apr 2009 02:25:11 GMT

When I was in the office today, he mentioned something about the interest rate going down. I would call him in the morning to clarify. If I decide to switch lender in a week. Can I still use the same appraisal as I gave a check for 525.00 for the apprasail which would be ordered tomorrow.

Re: GFE Review

ShanetheMortgageMan — Wed, 22 Apr 2009 02:32:02 GMT

It'd be up to the new lender if they would be able to use the appraisal, and also up to the appraiser if he also wanted to re-assign it, plus cooperation from the current broker too - so you'd need 3 parties to agree. Not very likely. $525 for an appraisal? Wow.

Re: GFE Review

SonorityGenius — Wed, 22 Apr 2009 02:36:07 GMT

Wow indeed! Yikes $525 for an appraisal??! What is the appraiser a one person company like your LO? Lol

Most average around $300. Even in NJ its only $350! lol

Re: GFE Review

Anonymous — Wed, 22 Apr 2009 13:54:48 GMT

$525 for an appraisal?!?!?! Broker gets $2k??? No bueno my friend.

Re: GFE Review

eddymvp — Wed, 22 Apr 2009 17:47:32 GMT

I called my broker and he told me that was the original GFE when he pre-approve me and that was the rate at that time in February, 2009.

THis was his replied by email after we hung up the phone.

Remember we spoke of this. You can obtain that rate with 2 points. Your rate is not locked so there is a chance that if the rates go lower we can obtain 5.0% with the same closing costs. That would be great for you and I will watch the rates for you and let you know. For now, let’s get through the home inspection. Please let me know how it goes.

Thanks,

Re: GFE Review

Anonymous — Wed, 22 Apr 2009 18:56:05 GMT

May be wrong, but with your score above 620 and an FHA loan, I thoguht 5% was right around the going rate with NO points. I still think he may be trying to pull a fast one on ya. I would really rcomend you shop around and see what you can come up with.

Re: GFE Review

Anonymous — Wed, 22 Apr 2009 22:26:48 GMT

i agree...something doesn't sound right here....i'd shop around.

Re: GFE Review

Anonymous — Thu, 23 Apr 2009 02:11:59 GMT

RUN from this guy!

"Let's get through the inspection" translation = "Let me try to shift the focus to something else for you to worry about so I can rob you blind!"

Re: GFE Review

eddymvp — Thu, 23 Apr 2009 11:52:11 GMT

I did the home inspections yesterday and the singles on the house needs to be replace on one side of the house. I still haven't called the lender to have him order the appraisal. I'm not sure if I should switch lender at this point since the offer was submitted with a pre-approve offer from him.

Re: GFE Review

ShanetheMortgageMan — Thu, 23 Apr 2009 16:00:31 GMT

If you like getting screwed, then don't switch... I'd cancel buying a home if that was the offer I was getting.

Re: GFE Review

eddymvp — Thu, 23 Apr 2009 16:35:04 GMT

I haven't called the guy yet and he has called me more than 15 times already today. I've already started the process with a different lender.

Re: GFE Review

ShanetheMortgageMan — Thu, 23 Apr 2009 21:56:08 GMT

Good for you, hopefully your former LO has learned to be more competitive in the future.

Re: GFE Review

eddymvp — Fri, 24 Apr 2009 00:36:59 GMT

Thanks guys for all your help and pointing that out to me. This was a crazy day for me as thing lender was harrassing me all day long while I was at work. From 10AM to 2:30PM i had 17 missed call from him. He sent me an email around 2:45 and I decided to return his phone call at 3pm.

This was his email.

Your commitment date is May 22. By that date we need to have your loan approved and all conditions cleared including verifying all funds required to close. Just in case you were unable to document all funds required to close by that date, I wanted you approved at 5.5% so I would be able to take out the 1 point if we had to as an option. After my discussion with you yesterday, you indicated that you could get a gift from your sister if you needed to. You did mention the sister gift as a possibility Tuesday evening, but Wed it sounded more definite. Based on that new information, the funds issue will not be a problem assuming we can document everything. If the home inspection was to your satisfaction, we can lock the rate at the current FHA rates. 5.0% with 1 point and closing costs. This is the deal you signed up for, the only difference is the rate is 5.0%. Or you can keep the rate at 5.5% with 0 points or in other words you will need $2,120 less at closing than the original estimate.

He can't believe that another lender can offer me a 5.0% with zero points and once I told him that I was going with another lender he asked me who that lender was. I refused to tell him who it was and he sent that he was going to lock my FHA case. I told him that I did not know what that was and didn't care at the moment and that he would have to release it later on and I hunged up.

Crazy story, however without your help I wouldn't find out that this LO wanted to forced me to get a loan so he can get a bonus for locking me in with that high interest.

Re: GFE Review

Anonymous — Fri, 24 Apr 2009 00:40:49 GMT

I'm sure Shane or Dallas will be to the rescue soon. Sounds like he was threatening to screw you over. I didn't go FHA but I know they either assign a case number to you or the house during each transaction. I believe that even if you switch lenders, etc. that number stays the same. Sounds like Mr. Ripoff got p*ssed off and is retaliating. If I were you I'd find out what the regulatory boards are for lenders and report him. Very unprofessional, unethical and a scammer if you ask me. He's trying to bully you into staying with him. F-him!

Re: GFE Review

ShanetheMortgageMan — Fri, 24 Apr 2009 02:31:44 GMT

If an FHA case # has been ordered all you need to do is write your loan officer a letter stating you would like to have your case # transferred over to the new broker or lender. Then the new lender or broker can look up the current FHA case # by your SSN & address and request it from your former loan officer's company.

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4000.2/40002c4HSGH.pdf

4-2 TRANSFERS OF CASE NUMBERS BETWEEN LENDERS.

A. New Lender. Lenders are expected to cooperate in the transfer of case numbers. At the request of a borrower, the case number is to be assigned to the new lender using the Case Transfer function in FHA Connection. The transferring lender is not entitled to a fee for the transfer of a streamline refinance case number, regardless of the stage of processing the loan is in. The transferring lender may be entitled to any lock-in fee collected from the borrower at the time of application. The transferring lender is required to provide the new lender with the appraisal but is not required to provide any processing documents. If processing documents are transferred, the fee for providing these documents is to be negotiated between the lenders. No separate charge to the borrower is authorized for this transfer.

http://www.hud.gov/offices/hsg/sfh/ref/sfhp2-17.cfm

Chapter 2
Mortgage Credit Guidelines
Page 2-17

The transferring lender must make the transfer electronically utilizing FHA Connection. Only if extenuating circumstances exist, will HUD endorsement technicians transfer a case number to a new lender. In those instances, an assignment letter must be sent to the attention of an endorsement technician in the HUD Homeownership Center (HOC) to make the necessary changes in CHUMS, noting that this is an exception and stating the reason why the lender is unable to affect the transfer themselves.

If a lender will not transfer a case number, but the borrower wants to work with a new lender, the new lender should:

(1) Send the letter to the HOC specifically outlining the steps they have taken to accomplish the transfer;

(2) List what fees (if any) the original lender has requested;

(3) Provide a resolution to that request for payment for services, along with a letter signed by the borrower stating they want to work with the new lender.

If your borrower has requested a transfer in writing, the lender must comply with their request as outlined in HUD Handbook 4000.2, 4-2A. No separate charge(s) to the borrower are authorized for the transfer of case numbers.

If the transferring lender is uncooperative, prior to contacting HUD, your Branch Manager should attempt to resolve the situation.

Please see: HUD Handbook 4000.2, 4-2 for additional information regarding transfers of case numbers, appraisals and Master Appraisal Reports (MAR).