Good Faith Estimate


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Good Faith Estimate

In mortgages, a detailed list of all the all-in costs of a loan, which the prospective lender must provide to the prospective borrower within three days of applying for the mortgage. Commonly included in a good faith estimate are origination fees, government fees, the cost of the credit report, etc. Each fee is preceded by a number on the good faith estimate; the number comes from the HUD-1 Real Estate Settlement Statement, which assigns a number to each type of fee.

Good faith estimate.

A good faith estimate is a written summary provided by your mortgage lender. It shows the amount you can expect to pay at your real estate closing to cover all the fees and expenses that are part of arranging your mortgage loan.

It includes, among other things, the title search and title insurance, lawyers' fees, transfer taxes, and filing fees. The total amount of a good faith estimate is in addition to the down payment you will make.

Good Faith Estimate (GFE)

The form that lists the settlement charges the borrower must pay at closing,which the lender is obliged to provide the borrower within three business days of receiving the loan application.

See Settlement Costs and Mortgage Scams and Tricks/Strictly Lender Scams/Pad the GFE.

References in periodicals archive ?
For more information about OneSourceQuote, or to learn more about closing cost estimations and the Good Faith Estimate, please call one of Hartford National Title's closing experts at 877-848-5975, or visit http://www.
Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator's receipt of all necessary information.
One frequently cited criticism of the good faith estimate as it currently stands is that it requires disclosure only of brokers' direct charges, but indirect charges, such as yield spread premiums--compensation paid by originators to brokers who refer customers to them--are disclosed separately.
Creditors should be given a choice between guaranteeing settlement costs and providing a good faith estimate that is accurate within a specified tolerance.
2) It must include: (a) the amount of cash contributed, (b) a description (but not the value) of any property contributed, (c) whether the qualified organization provided any goods or services as a result of your contribution, and (d) a description and good faith estimate of the value of any goods or services described in (c).
Buyers need to pay attention to the good faith estimate a broker brings them, noting the points, closing costs, and how much money they're really borrowing," says Mike Hannigan, executive vice president of the Precedent Companies, a real estate firm in Indianapolis.
The goal of the reform is to have lenders provide consumers with a simple, clear and firm good faith estimate to shop for a home loan and service providers before they become so invested in the process that they cannot back out; and to allow any entity to assemble and offer consumers "guaranteed mortgage packages," including appraisal services.
The acknowledgment must include the amount of cash and a description of any property contributed; whether any property, goods or services were provided by the donee organization in return for the contribution; and a description and good faith estimate of the value of any goods or services provided or, if the goods and services consist solely of an intangible religious benefit, a statement to that effect.
The company has enhanced RESPA Auditor to enable lenders to implement complete end-to-end controls for their RESPA disclosure processes, from the initial Good Faith Estimate (GFE) at application to the HUD-1 form at closing.
There's no truth in lending as with credit cards, or good faith estimate as with mortgages," says Cheryl Creuzot, president and CEO of Wealth Development Strategies L.
If so, the acknowledgment also must include a description and good faith estimate of the value of the goods or services or, if the goods and services consist solely of intangible religious benefits, a statement to that effect.
ClosingCorp's SmartGFE Service empowers the wholesale and correspondent lending channels to remain viable by providing lenders immediate access to RESPA-compliant Good Faith Estimate (GFE) data.