Good Faith Estimate "changed circumstance"

[mwall289]

What is the name of your state (only U.S. law)? WI

My lender/bank sent me a letter four days prior to closing modifying my Good Faith Estimate. He added a charge for an appraisal because he "didn't realize" he had to get one - he thought it could be waived. The original GFE didn't include it.

Is this appropriate? Does it constitute a "changed circumstance" under the new GFE rules? I didn't think you could just add things to the GFE at the last minute anymore. Nothing in the transaction changed - the lender just didn't realize he needed to get one until right before closing.

 

[tranquility]

Keep it all in the original thread so the facts don't need to be rehashed.

 

[mwall289]

Keep it all in the original thread so the facts don't need to be rehashed.

No facts need to be rehashed. I just got an amended GFE in the mail today. Facts are as stated.

 

[tranquility]

Good luck with your theory of how to get the most accurate answers in the forum.

 

[mwall289]

Good luck with your theory of how to get the most accurate answers in the forum.

Seriously? I posted a specific mortgage related question regarding specific federal requirements. While related to my other question, I thought this to be a better forum given the nature of the rules related to Good Faith Requirements. The only reason I wouldn't get a response at this point is because you decided it was worth going out of your way to "complain" that this question was sufficiently related to my last. Was it worth your time to try to prove me wrong and prevent answers to my question rather than stay silent or help yourself?

 

[justalayman]

the bad part about you arguing is there is germane information concerning this issue in one of your other threads.

 

[mwall289]

Wow. Thanks. I mean, this is just lovely. I'm certainly not "entitled" to advice, but I really appreciate the way everyone went out of their way not to give it and instead criticize me.

Clearly, it's important to demean a guy who's clearly struggling during a very stressful time in his life and could possibly be homeless on Monday thanks to a rotten lender who (admittedly) screwed up. Yeah, let's just call him out for trying to narrow his question and asking it in a narrower forum. Let's all be jerks, because at the end of the day it'll be easier to sleep at night knowing we were "right" and that we didn't help someone asking for it.

 

[Kiawah]

It's a good faith 'estimate'. It's not a contract w/hard and fast committed price.

Pay the extra 300 bucks for the appraisal and go to closing. You won't be out on any street homeless unless you want to be.

 

[mwall289]

It's a good faith 'estimate'. It's not a contract w/hard and fast committed price.

Pay the extra 300 bucks for the appraisal and go to closing. You won't be out on any street homeless unless you want to be.

Thank you for your response. First, we could be homeless because the lender screwed up with the appraisal and it may not be in on time. Therefore, the seller is talking about canceling the deal.

Also, a good faith estimate is, despite the title, now binding on banks (as of January 1, 2010). This helps prevent bait-and-switches - very common prior to the law change. Lenders can no longer increase the costs listed on the GFE unless they are permitted to modify it, otherwise they must reimburse the buyer. They can only modify the GFE in certain limited situations - in all other situations they are bound to the GFE. I was hoping someone here might know if this is a situation where they can make the modification: not realizing they needed an appraisal.

 

[tranquility]

First, we could be homeless because the lender screwed up with the appraisal and it may not be in on time.

I seem to recall this information from the OTHER thread.

Keep it all in the original thread so the facts don't need to be rehashed.

Therefore, the seller is talking about canceling the deal.

Hmm..it seems I've seen this before too.

Keep it all in the original thread so the facts don't need to be rehashed.

Context is everything. By putting it as a new question, you want people to look at things through the lens you have colored rosily. While you may get the answer you want, using all the facts contextualizing the deal is

how to get the most accurate answers in the forum.

Info edit:
Of course, the penalty if there is a violation of the Good Faith Estimate rules (Which I don't take an opinion upon.) is:

(i) Violations of section 5 of RESPA (12
U.S.C. 2604). A loan originator that vio-
lates the requirements of this section
shall be deemed to have violated sec-
tion 5 of RESPA. If any charges at set-
tlement exceed the charges listed on
the GFE by more than the permitted
tolerances, the loan originator may
cure the tolerance violation by reim-
bursing to the borrower the amount by
which the tolerance was exceeded, at
settlement or within 30 calendar days
after settlement. A borrower will be
deemed to have received timely reim-
bursement if the loan originator deliv-
ers or places the payment in the mail
within 30 calendar days after settle-
ment.