Lender to provide.
Except as otherwise provided in
...
...
or (h)
...
of this section, not later than
...
3 business days
...
after a lender receives an application, or information sufficient to complete
...
an application,
...
the lender
...
must provide the applicant with
...
a GFE. In the case
...
of dealer loans,
...
the lender
...
must either provide
...
the GFE
...
or ensure that
...
the dealer
...
provides the GFE.
...
The lender
...
must provide
...
the GFE
...
to the loan applicant by hand delivery, by placing it in the mail, or, if the applicant agrees, by fax, email, or other electronic means.
...
The lender
...
is not required to provide the applicant with
...
a GFE
...
if, before the end of the 3-business-day
...
period:
...
The lender
...
denies the application; or
The applicant withdraws
...
the application.
...
The lender
...
is not permitted to charge, as a condition for providing
...
a GFE, any fee for an appraisal, inspection, or other
...
similar settlement service.
...
The lender
...
may, at its option, charge a fee limited to the cost of a credit report.
...
The lender
...
may not charge additional fees until after the applicant has received
...
the GFE
...
and indicated an intention to proceed with the loan covered by
...
that GFE. If
...
the GFE
...
is mailed to the applicant, the applicant is considered to have received
...
the GFE
...
3 calendar days
...
after it is mailed, not including Sundays and the legal public holidays specified in 5 U.S.C. 6103(a).
...
The lender
...
may at any time collect from the loan applicant any information that it requires in addition to the
...
required application
...
information. However,
...
the lender
...
is not permitted to require, as a condition for providing
...
a GFE, that an applicant submit supplemental documentation to verify the information provided on
...
the application.
Mortgage broker to provide.
Except as otherwise provided in
...
...
or (h)
...
of this section, either
...
the lender
...
or the mortgage broker
...
must provide
...
a GFE
...
not later than
...
3 business days
...
after a mortgage broker
...
receives either
...
an application
...
or information sufficient to complete
...
an application.
...
The lender
...
is responsible for ascertaining whether
...
the GFE
...
has been provided. If
...
the mortgage broker
...
has provided
...
a GFE,
...
the lender
...
is not required to provide an
...
additional GFE.
...
The mortgage broker
...
must provide
...
the GFE
...
by hand delivery, by placing it in the mail, or, if the applicant agrees, by fax, email, or other electronic means.
...
The mortgage broker
...
is not required to provide the applicant with
...
a GFE
...
if, before the end of the 3-business-day
...
period:
...
The mortgage broker
...
or lender
...
denies the application; or
The applicant withdraws
...
the application.
...
The mortgage broker
...
is not permitted to charge, as a condition for providing
...
a GFE, any fee for an appraisal, inspection, or other
...
similar settlement service.
...
The mortgage broker
...
may, at its option, charge a fee limited to the cost of a credit report.
...
The mortgage broker
...
may not charge additional fees until after the applicant has received
...
the GFE
...
and indicated an intention to proceed with the loan covered by
...
that GFE. If
...
the GFE
...
is mailed to the applicant, the applicant is considered to have received
...
the GFE
...
3 calendar days
...
after it is mailed, not including Sundays and the legal public holidays specified in 5 U.S.C. 6103(a).
...
The mortgage broker
...
may at any time collect from the loan applicant any information that it requires in addition to the
...
required application information. However,
...
the mortgage broker
...
is not permitted to require, as a condition for providing
...
a GFE, that an applicant submit supplemental documentation to verify the information provided on
...
the application.
Availability of GFE terms.Except as provided in this paragraph, the estimate of the charges and terms for
...
all settlement services
...
must be available for at least
...
10 business days
...
from when
...
the GFE
...
is provided, but it may remain available longer, if
...
the loan originator
...
extends the period of availability. The estimate for the following charges are excepted from this requirement: the interest rate, charges and terms dependent upon the interest rate, which includes the charge or credit for the interest rate chosen, the adjusted origination charges, and per diem interest.
Content and form of GFE.
...
The GFE
...
form is set out in
...
Appendix C
...
to this part.
...
The loan originator
...
must prepare
...
the GFE
...
in accordance with the requirements of this section and the Instructions in
...
Appendix C
...
to this part. The instructions in
...
Appendix C
...
to this part allow for flexibility in the preparation and distribution of
...
the GFE
...
in hard copy and electronic format.
Tolerances for amounts included on GFE.
Except as provided in
...
paragraph (f)
...
of this section, the actual charges
...
at settlement
...
may not exceed the amounts included on
...
the GFE
...
for:
The origination charge;
While the borrower's interest rate is locked, the credit or charge for the interest rate chosen;
While the borrower's interest rate is locked, the adjusted origination charge; and
Transfer taxes.
Except as provided in
...
paragraph (f)
...
of this section, the sum of the charges
...
at settlement
...
for the following services may not be greater than 10 percent above the sum of the amounts included on
...
the GFE:
Lender-
...
required settlement services, where
...
the lender
...
selects the third party
...
settlement service
...
provider;
Lender-required services,
...
title services
...
and required title insurance, and owner's title insurance, when the borrower uses
...
a settlement service provider identified by
...
the loan originator; and
Government recording charges.
The amounts charged for all
...
other settlement services
...
included on
...
the GFE may change
...
at settlement.
Binding GFE.
...
The loan originator
...
is bound, within
...
the tolerances
...
provided in
...
paragraph (e)
...
of this section, to
...
the settlement
...
charges and terms listed on
...
the GFE
...
provided to the borrower, unless a
...
revised GFE
...
is provided prior
...
to settlement
...
consistent with this
...
paragraph (f)
...
or the GFE expires in accordance with
...
paragraph (f)(4)of this section. If
...
a loan originator
...
provides a
...
revised GFE
...
consistent with this paragraph,
...
the loan originator
...
must document the reason that a
...
revised GFE
...
was provided.
...
Loan originators
...
must retain documentation of any reason for providing a
...
revised GFE
...
for no less than 3 years
...
after settlement.
CHANGED CIRCUMSTANCES AFFECTING SETTLEMENT COSTS.
...
If changed circumstances
...
result in increased costs for
...
any settlement services
...
such that the charges
...
at settlement
...
would exceed
...
the tolerances
...
for those charges,
...
the loan originator
...
may provide a
...
revised GFE
...
to the borrower. If a
...
revised GFE
...
is to be provided,
...
the loan originator
...
must do so within
...
3 business days
...
of receiving information sufficient to
...
establish changed circumstances. The
...
revised GFE
...
may increase charges for services listed on
...
the GFE
...
only to the extent that
...
the changed circumstances
...
actually resulted in higher charges.
CHANGED CIRCUMSTANCES AFFECTING LOAN.
...
If changed circumstances
...
result in a change in the borrower's eligibility for the specific loan terms identified in
...
the GFE,
...
the loan originator
...
may provide a
...
revised GFE
...
to the borrower. If a
...
revised GFE
...
is to be provided,
...
the loan originator
...
must do so within
...
3 business days
...
of receiving information sufficient to
...
establish changed circumstances. The
...
revised GFE
...
may increase charges for services listed on
...
the GFE
...
only to the extent that
...
the changed circumstances
...
affecting the loan actually resulted in higher charges.
BORROWER-REQUESTED CHANGES.If a borrower requests changes to
...
the federally related mortgage loan identified in
...
the GFE
...
that change
...
the settlement
...
charges or the terms of the loan,
...
the loan originator
...
may provide a
...
revised GFE
...
to the borrower. If a
...
revised GFE
...
is to be provided,
...
the loan originator
...
must do so within
...
three business days
...
of the borrower's request. The
...
revised GFE
...
may increase charges for services listed on
...
the GFE
...
only to the extent that the borrower-requested changes to
...
the mortgage loan
...
identified on
...
the GFE
...
actually resulted in higher charges.
EXPIRATION OF GFE.If a borrower does not express an intent to continue with
...
an application within
...
10 business days
...
after the GFE
...
is provided, or such longer time specified by
...
the loan originator
...
pursuant to
...
paragraph (c)
...
of this section,
...
the loan originator
...
is no longer bound by
...
the GFE.
INTEREST RATE-DEPENDENT CHARGES AND TERMS.If the interest rate has not been locked, or a locked interest rate has expired, the charge or credit for the interest rate chosen, the adjusted origination charges, per diem interest, and loan terms related to the interest rate may change. When the interest rate is later locked, a
...
revised GFE
...
must be provided showing the revised interest rate-dependent charges and terms.
...
The loan originator
...
must provide the
...
revised GFE
...
within 3 business days
...
of the interest rate being locked or, for an expired interest rate, re-locked. All other charges and terms must remain the same as on the
...
original GFE, except as otherwise provided in
...
paragraph (f)
...
of this section.
NEW CONSTRUCTION HOME PURCHASES.In transactions involving new construction home purchases,
...
where settlement
...
is anticipated to occur more than 60
...
calendar days
...
from the time
...
a GFE
...
is provided,
...
the loan originator
...
may provide
...
the GFE
...
to the borrower with a clear and conspicuous disclosure stating that at any time up until 60
...
calendar days
...
prior to closing,
...
the loan originator
...
may issue a
...
revised GFE. If no such separate disclosure is provided,
...
the loan originator
...
cannot issue a
...
revised GFE, except as otherwise provided in
...
paragraph (f)
...
of this section.
GFE is not a loan commitment.Nothing in this section shall be interpreted to require
...
a loan originator
...
to make a loan to a particular borrower.
...
The loan originator
...
is not required to provide
...
a GFE
...
if the loan originator
...
does not have available a loan for which the borrower is eligible.
Open-end lines of credit (home-equity plans) under Truth in Lending Act.In the case of
...
a federally related mortgage loan
...
involving an open-end line of credit (home-equity plan) covered under the Truth in Lending Act
...
and Regulation Z,
...
a lender
...
or mortgage broker
...
that provides the borrower with the disclosures required by 12 CFR 1026.40
...
of Regulation Z
...
at the time the borrower applies for such loan shall be deemed to satisfy the requirements of this section.
Violations of section 5 of RESPA (12 U.S.C. 2604).
...
A loan originator
...
that violates the requirements of this section shall be deemed to have violated section 5
...
of RESPA. If any charges
...
at settlement
...
exceed the charges listed on
...
the GFE
...
by more than the
...
permitted tolerances,
...
the loan originator
...
may cure
...
the tolerance
...
violation by reimbursing to the borrower the amount by which
...
the tolerance
...
was exceeded,
...
at settlement
...
or within 30
...
calendar days
...
after settlement. A borrower will be deemed to have received timely reimbursement if
...
the loan originator
...
delivers or places the payment in the mail within 30
...
calendar days
...
after settlement.