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The Loan Estimate replaces the Good Faith Estimate, or GFE, that was used prior to 2015. Lenders are required to issue Loan Estimates within three days of receiving a complete loan application, per the TILA-RESPA Integrated Disclosure Rule (TRID).
Here’s a loan estimate example broken down by page and section. You can view a similar, interactive visual on the Consumer Finance Protection Bureau’s website . Loan estimate example: Page 1
For closed-end reverse mortgages, a lender or broker is required to provide the consumer with the standard Good Faith Estimate (GFE) form. A Good Faith Estimate of settlement costs is a three-page document that shows estimates for the costs that the borrower will likely incur at settlement and related loan information.
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Any significant changes in fees should be re-disclosed in the final good faith estimate (GFE). Also directly related to points is the concept of the ' no closing cost loan ', in which the consumer accepts a higher interest rate in return for the lender paying the loan's closing costs up front.
A new survey reveals that more than half of homebuyers today don't know what the Good Faith Estimate is actually good for - namely, to shop around for the cheapest mortgage loans on the market.
The new Loan Estimate form (LE) [20] is the latest step taken by Department of Housing and Urban Development (HUD) to protect and assist consumers. In the past, lenders had provided potential borrowers with Good Faith Estimates (GFEs). 1. Lenders must issue the LE within three business days of loan application.
An appraiser performing and communicating an appraisal under USPAP may estimate value assuming facts and conditions proscribed by a legal presumption, but a determination would have to be made whether the assumption is an extraordinary assumption or hypothetical condition and communicated appropriately as required under USPAP.
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