Tim Bradford   
Lending Specialist   
216-324-8113   
LO.007173.000   

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Understanding "Your Adjusted Origination Charges"

This is the last section that is discussed here.  If you are dealing with a someone that needs to follow the rules as a Mortgage Broker. You will want to review the page that discusses "Mortgage Broker - Adjusted Origination Fees" .  

Sample "Your Adjusted Origination Charges"

From a Mortgage Banker

This Section of the new Good Faith Estimate deserves the most attention because it details the costs associated with the rate being offered by your lender.

Because only "Your Origination Charges" and "Transfer Taxes" are the only items that CANNOT INCREASE AT SETTLEMENT and "All Other Settlement Services" should be very close if not identical. 

Here is exactly what is detailed on the Page 3 of the Good Faith Estimate

 

BEWARE of GFE's CONTAINING
LOW BALL ESTIMATES FOR  "ALL OTHER SETTLEMENT SERVICES"
in the past this was used by some lenders to mislead consumers.  Unfortunately the new Good Faith Estimate or Regulations does very little to prevent this practice.

There is another issue that will be added at a later time to this site and that issue is "REQUIRED USE".   The owner of this site believes that consumers should be encouraged to shop for their loans rate and terms as well as Settlement Services.   If a consumer is presented with a Seller, Builder, Lender, Realtor or Title Company that requires you to use the services of another Seller, Builder, Lender, Realtor or Title Company, you need to carefully look at the every aspect of the transaction because you may save money in one area, but pay for it elsewhere.   As part of the New GFE Regulation, HUD attempted to restrict "REQUIRED USE".   HUD was unsuccessful so this should be something consumers need to review for themselves.   Here is information from HUD on this subject.  Department of Housing and Urban Development to Act on RESPA Rules  

Another issue that will be added is "Affiliated Business Arrangements" and "Recommended USE".   The number of Brokers and Realtors having ownership interests in Title Companies, Mortgage Companies and Insurance Companies is growing and this can create an anti competitive environment. 

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