IMPORTANT! The following information is only applicable to loans submitted prior to October 3, 2015.
GFE/IFW templates are predefined in the Admin Site based on the institution, product and/or state. This allows the GFE/IFW to auto-populate with predefined fee lines based on the loan file scenario.
The GFE/IFW fee line section is split into lines 800 through 1400 and includes a Trades table at the bottom for comparison purposes. The fee line grid is broken out into the following column headers:
· Name: System generated Fee Names and fields designated to be either predefined in the Admin Site or manually entered by the user. Users will not be able to edit a system generated fee name, which appears in a read-only format. There are some Fee Name fields that may be in an open text box format, dependent on configuration in the Admin Site.
· Amount: The Amount will auto-populate once a fee percentage and/or fee amount has been entered. Fee amount can be predefined in the Admin Site and/or be a manual entry, dependent on permissions in the Admin Site.
· PFC: The PFC (Prepaid Finance Charges) column can be predefined in the Admin Site. Based on configuration settings, users may be permitted to manually update a fee to indicate if the fee line is a PFC and will affect the APR or not. A drop-down list with options of Yes or No will appear if the user has the ability to change the PFC status of a fee, otherwise the Yes or No will be grayed out indicating the designation cannot be changed.
· Sec32: The SEC32 (Section 32) column can be predefined in the Admin Site. Based on configuration settings, users may be able to indicate if the fee line entered is a Sec32 and will affect High Cost calculations. A drop-down list with options of Yes or No will appear if the user has the ability to change the SEC32 status of a fee, otherwise the Yes or No will be grayed out indicating the designation cannot be changed.
· Paid By: The Paid By column can be predefined in the Admin Site or entered manually. Users with the option to choose who the fee is paid by will do so by selecting one of the options from the drop-down list. The available Paid By options are: Borrower, Seller, Broker, Lender, POC (Paid Outside Closing), and Multiple. If Multiple is selected, five open text boxes (Borrower, Seller, Broker, Lender, and POC) will appear below the fee line for the user to enter the amounts paid by each party. Users are not able to make edits when the Paid By field is grayed out and predefined in the Admin Site.
· Paid To: The Paid To column can be predefined in the Admin Site or chosen by the user. Users with the option to choose who the fee is being paid to will do so by selecting one of the options in the drop-down list. The available Paid To options are: Broker, Lender, Title, Escrow, Other, and Appraisal (if applicable). Users are not able to make edits when the Paid To field is grayed out and predefined in the Admin Site.
· Borrower Chosen: The Borrower Chosen column is only available in the 1100 – Title Charges section of the fee lines. This column cannot be predefined in the Admin Site and is designated manual selection of Yes or No. If Yes is selected, the fee will be included in the 10% Tolerance calculation.
For a fee line to be included in the compliance testing in MortgagebotLOS as an Affiliate Fee, the fee must be set to be paid to either: Appraiser, Title, or Other. If Appraiser or Title is selected, the Appraiser Company or Title Company must be configured in the Admin Site. If Other is selected, the user has the option to mark the box next to Affiliate to indicate the fee is paid to an Affiliate and should be included in the compliance testing. An option for Financed will appear when the Affiliate box is checked allowing the user to indicate if the fee is being financed.
For a fee line to be included in the compliance testing (Points and Fees Test) in MortgagebotLOS as an Applicable Finance Charge, the fee line must be marked as a PFC and must be paid to either Lender or Broker.
The Show All Applicable Paid By Split Fees hyperlink is available above the fee lines and will become active when Paid By > Multiple has been selected for any of the fee lines. Clicking on the hyperlink will change the text in the hyper link to Hide All Applicable Paid By Split Fees and provide the user with the option to hide the five open text boxes for the split fees on each fee line and only display the total fee amount. If selected, the hyperlink will change back to Show All Applicable Paid By Split Fees to allow the user the option to unhide the split fees and display the five open text boxes.
Tip: If there are no split fees and the user clicks on Show All Applicable Paid By Split Fees, a pop-up message will display stating there are no split fees since none of the fees is paid to Multiple.
800 Item Paid to Lender in Connection with Loan
Section 800 of the GFE is for any items being paid to the Lender and are categorized as a Rate Credit or Charge, Origination or Lender Required fees. These categories are all predefined in the Admin Site and are used to determine how the fee will calculate and where it will calculate on the printed GFE. Fees included in the 800 section are any origination, discount, appraisal, credit report, tax service, flood certification, VA Funding, Buydown, Processing, and Underwriting fees. Lender Credits and LLPA’s may also be added to the 800 section.
Tip: If the fee is set as an Origination fee in Admin, then the fee line will fall in Box One of the GFE. If the fee is set to Lender Required in Admin, then the fee line will fall in Box Three of the GFE.
Fees can be added in Admin so they appear for certain states or programs (FHA, VA, and USDA). For instance, if the loan program is VA, a Calculate hyperlink will appear next to the line for VA Funding Fee in the 800 section. Clicking on the Calculate hyperlink will open a pop-up window allowing the user to answer questions on the VA Funding Fee Percentage Factors screen. The system will then calculate the dollar amount of the VA Funding Fee and will automatically populate along with the dollar amount in the Amount column.
900 Items Required by Lender to be Paid in Advance
Section 900 of the GFE displays items required by the Lender to be Paid in Advance. The 901 fee line of the GFE will allow a user to enter the number of days for prepaid interest that is paid by the borrower. The dollar amount per day will calculate automatically but can be modified by the user. Clicking the Calculate hyperlink next to Interest will calculate and display the total prepaid interest in the Amount column.
Line 902 for Mortgage insurance premium can be used to enter the amount required to pay private mortgage insurance, the FHA mortgage insurance premium, the VA Funding Fee, or any advance payments as applicable to the loan application. For private mortgage insurance, a monthly percentage amount can be entered for the system to automatically calculate the yearly amount to be paid. For FHA, a drop-down list will appear for the user to select the mortgage insurance premium percentage.
For USDA, line 902 will display as the Guarantee Fee and a Calculate hyperlink. Click the Calculate hyperlink to open a pop-up window for the GRH Fee Calculation. Enter the Conditional Commitment Date and the system will populate the Annual Fee Factor, Base Loan Amount, Guarantee Fee Rate, Guarantee Fee, and Guarantee Fee Financed fields automatically. Click Save/Close to close the GRH Fee Calculation and automatically populate the Guarantee Fee percentage and Amount to the appropriate fields on line 902. Click Cancel to discard changes and close the GRH Fee Calculation.
Manually enter in the hazard insurance premium amount in line 903, if applicable.
1000 Reserves Deposited with Lender
Section 1000 is for reserves deposited with Lender. Enter the number of Months and Per Month amount in reserves for Homeowner’s Insurance, Mortgage insurance, City property taxes, County property taxes, Annual assessments, and Flood insurance, if applicable. The Amount of the Initial Deposit for Your Escrow Account on line 1001 will calculate automatically based on the reserves entered by the user.
Users with the applicable permissions will see an Aggregate Adjustment button at the bottom of this section. Click the Aggregate Adjustment button to open a separate window for the Initial Escrow Account Setup screen.
· Select the Payment Schedule and enter the Annual Payment Amount and Payment Dates for each Disbursement Type (Hazard Insurance, Mortgage Insurance, City Taxes, County Taxes, Annual Assessments, and Flood Insurance).
· The # Of Months field will calculate automatically based on the date entries and the Cushion. This field may be manually changed to override the system calculated values.
· Click Calculate to calculate the Aggregate Adjustment amount.
· Click Save/Close to automatically populate the escrow information to the 1000 section of the GFE. Click Cancel to discard changes and close the Initial Escrow Account Setup screen.
· Click Clear to reset and remove all entries made to the Initial Escrow Account Setup.
· The Aggr. Escrow hyperlink will open the Aggregate Escrow Trial Balance screen for users to view the final amounts and disbursement schedule.
Tip: Two open text boxes are available in the 1000 section for users to enter reserves for additional assessments (for example, school taxes and so on).
1100 Title Charges
Section 1100 of the GFE includes title fees such as the settlement/closing fee, title insurance, title exam, document preparation fee, and notary fees.
1200 Government Recording & Transfer Charges
Section 1200 of the GFE includes fees related to government recording charges and transfer taxes.
1300 Additional Settlement Charges
Section 1300 of the GFE allows for additional fees in connection with the loan application. Third party fees such as pest inspections and surveys are often included in this section.