My question concerns how to disclose fees when you are completing two real-estate loans for the same customer at the same time.
For example, loan officer completes a first mortgage for a borrower and decides to do a second real-estate loan on the same property, simultaneously. On the second, he will only charge a $150 fee for origination. Are we to include only the $150 fee on the second GFE or should we be disclosing all fees that the customer “could incur” by taking the loan.
I think that you won’t have to list the cost for the items that were covered by your first loan as you know going into this loan that they are not going to incur those cost.
What I’m basing this opinion on is the following portion of RESPA:
Good faith estimate or GFE means an estimate of settlement charges a borrower is likely to incur, as a dollar amount, and related loan information, based upon common practice and experience in the locality of the mortgaged property, as provided on the form prescribed in § 3500.7 and prepared in accordance with the Instructions in Appendix C to this part
The part about “settlement charges a borrower is likely to incur…”
If you know at the onset of the loan application process that they are not going to incur these charges as it relates to the second loan then I think you have an argument that those fees are not likely to be incurred.
I looked through the Regulation, the FAQ’s, and RESPA Roundups and I didn’t find anything specific that I can point you to that would give you a definitive answer. I did want to you give you what I’m basing my opinion on.
There is not much to add to JGo9’s excellent answer. There is a discussion in the December 2010 RESPA Roundup that indirectly supports JGo9’s answer. “If a loan originator knows at the time of application that the loan originator will use an existing appraisal or survey that was paid for in a prior transaction, the loan originator must list the appraisal or survey in Block 3 and disclose $0.00 as the charge for that service.”