Do you represent buyers who receive more than one good faith estimate (GFE) from a single lender?
Sometimes. (40%, 21 Votes)
Never. (36%, 19 Votes)
Often. (24%, 13 Votes)
Total Voters: 53
Lenders have found another way to cheat the system and leach higher fees from buyers using the good faith estimate (GFE). [See first tuesday Form 204-5]
The GFE,given to buyers within three days of submitting their home loan application, is prohibited from exceeding 10% of the final closing costs, otherwise lenders pay the difference. However, some lenders purposefully over quote their estimates to ensure the final number is within the required 10% range.
A recent survey of 205 closing agents by the American Land Title Association reported nearly 75% of agents have observed lenders over quote their GFEs and pad them withestimates for general services like “document preparation” and “warehouse fees” which don’t make it to the final statement. More than half of the agents surveyed reported being pressured to cut their own fees in order for the lender to make it within the 10% buffer.
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