RESPA's Changed Circumstances: A Texas Title Company That Can Help Get You Through It

Effective January 1, 2010 RESPA states that once the Good Faith Estimate has been disclosed to your client, it’s pretty much written in stone. But what if something does need to be changed? There are certain circumstances that you may change the numbers on your GFE.

If the following occurs, you may change your GFE:

1. Acts of God, war, disaster, or other emergency.
2. Info particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided, which information may include information about the credit quality of the borrower, the amount of loan, the estimated value of the property, or any other information that was used in providing the GFE.
3. New information particular to the borrower or transaction that was not relied on in providing the GFE.
4. Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.

In addition to these rules, RESPA goes further to say:

None of the information collected by the loan originator prior to issuing the GFE may later become the basis for a “changed circumstance” upon which a loan originator may offer a revised GFE unless the loan originator can demonstrate that there was a change in the particular information or that it was inaccurate, or that the loan originator did not rely on that particular information in issuing the GFE.

In addition, the loan originator is presumed to have relied on the borrower’s name, the borrower’s monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator before providing the GFE. The loan originator cannot base a revision of the GFE on this information unless it changed or is later found to be inaccurate.

GOOD RULE OF THUMB: GET IT RIGHT THE FIRST TIME!!

We are a Texas title company that will help you get it right the first time. Use our Texas Title Insurance Premium Calculator to determine your title fees to the penny. So many times, mortgage lenders and mortgage brokers leave money on the table when filling out their GFE because they did not include the credit the Texas title company has to deduct from the basic Texas title insurance premium. Check it out!