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Good Faith Estimate (GFE) Entries - Explanation of Requirements
New Hud-1 and Hud-1A Settlement statement forms must be used by January 1, 2010. Optionally, lenders may require use of the new forms in 2009.
GFE Line Numbers: Every charge to the borrower on the settlement statement line 801 and above must indicate the section of the good faith estimate where the charge appeared;
Where required, HUD LITE will automatically assign a Good Faith Estimate (GFE) line number to borrower's settlement charges. Where appropriate, you can select a different GFE line number as follows: from the GFE drop-down menu select an item with the correct GFE line number;
The GFE drop-down list can also be used to select a category of the expense, to be used in the GFE Comparison Page. See below.
Entries "Inside" and "Outside of the Columns": Some of the borrower's settlement charges are itemized with the amount printing as a notation "outside of the columns". Notations are totaled, with the total being carried over to a line "inside the columns". ("Inside the columns" refers to right-most column(s) on the settlement statement which are totaled at the bottom of each column.) For example, lines 801 (origination fee) and 802 (loan discount points) print as notations "outside of the columns", with the total carried over to line 803 "inside the columns";
Using HUD LITE, enter all amounts in the Borrower's or Seller's Expenses columns. HUD LITE will automatically place the figures inside or outside of the columns as needed and will carry totals to the columns.
GFE Comparison Page: Every charge to the borrower on settlement statement line 801 and above must also be listed on the GFE Comparison Page, along with the amount that appeared on the good faith estimate;
Using HUD LITE, all settlement charges that have a GFE number will be automatically carried over to the GFE Comparison Page.
Selecting Categories for Entries in the GFE Comparison Page: Settlement charges carried to the GFE Comparison Page must be placed in one of three categories.
Some charges must be placed in a designated category and HUD LITE automatically places those items in their correct category and no choice is provided for those items.
Other charges may be placed in one of two categories. Where a choice is permitted, by default HUD LITE automatically places the charge in the "can change" category; Where appropriate, the default category may be changed. You can choose to place the charge in the category of items that can change up to 10% above the amount estimated in the Good Faith Estimate (the "change 10%" category): from the GFE drop-down menu select both the correct GFE line number and also the "change 10%" category.
Description of Categories for Entries in the GFE Comparison Page:
In the GFE Comparison Page, the amounts charged to borrower on the settlement statement must be placed in one of three lists. The three lists are:
Charges that cannot increase from the amount shown on the Good Faith Estimate; Lines 801, 802, 803 and 1203 always appear in the cannot increase category and no other charges appear in this category. HUD LITE automatically places these lines in the cannot increase category.
Charges that can increase up to 10% above the amount shown on the Good Faith Estimate. These are charges from providers that are identified or selected by the lender (providers that are on the lender's list), and government recording charges, unless the charge falls into the cannot increase category.
Charges that may change without limit from the amount shown on the Good Faith Estimate. These are charges from providers that were not selected or identified by the lender, or charges for initial escrow deposit, daily interest charges and homeowner's insurance.
Related Links:
Quick Start Guide for Good Faith Estimate (GFE) Entries and New 2010 Settlement Statement Features
Good Faith Estimate (GFE) Entries - Step-by-Step Instructions
Good Faith Estimate (GFE) Entries - General Instructions for Borrower and Seller Entries