The printed Good Faith Estimate (GFE 2010) is comprised of three pages. If the loan is a new construction loan, and one of the construction options is selected in the Purpose of Loan section on the Borrower Information screen, a fourth page, New Construction Statement, is automatically printed when the Good Faith Estimate (GFE 2010) is printed.

You must fill in the Initial Fee Worksheet, which will populate the Good Faith Estimate.

Good Faith Estimate Tutorial
Click here to download the Good Faith Estimate video demo. The video is a general overview of the Good Faith Estimate 2010.  You must have the G2M3 Codec installed to play the tutorial.  If you receive a codec error, please download the G2M3 codec from https://www1.gotomeeting.com/codec?Portal=www.gotomeeting.com

Important Dates (Page 1)

• The Interest Rate Available Through is the period in which the loan officer is honoring the interest rate.
• The Estimate Available Through field indicates how long the Good Faith Estimate is valid for the borrower. (Must be a minimum of 10 business days)
• The Rate Lock Period  populates from the Track > Registration or Banker > Secondary Marketing screen.

Summary of Loan (Page 1)

The Monthly Payment field will always display principal, interest, and mortgage insurance (if applicable), regardless of what type of loan it is.

Check any associated checkboxes that correspond with the loan scenario.

Click Calculate at the bottom of the GFE (2010)  to populate the following fields: (These fields will populate based from the information on the Truth-In-Lending form)

• Can the interest rate rise?
• Even if payments are made on time, can the loan balance rise?
• Even if payments are made on time, can the Monthly Principal, Interest, and MI rise?

Escrow Account Information (Page 1)

If the loan does not have an escrow account, Insert a check into the The Loan does not have an Escrow Account checkbox.  If the loan does have an escrow account, leave the checkbox blank.

The monthly payment that displays in this section is the principal and interest payment plus mortgage insurance.. It does not include taxes or hazard insurance.

Summary of Settlement Charges (Page 1)

A. Adjusted Origination Charges:  Populates from the 800: ITEMS PAYABLE IN CONNECTION WITH LOAN section of the Initial Fees worksheet minus the Yield Spread Premium credit. excluding the Appraisal Fee, Loan Discount, Credit Report, Tax Service Fee, and Flood Certification.

B.  All Other Settlement Services Charges - Populates the total amount of fees from the 900 - 1300 series sections of the Initial Fee Worksheet.

Adjusted Origination Charges (Page 2)

1. Origination Charge -  Populates from the 800: ITEMS PAYABLE IN CONNECTION WITH LOAN section of the Initial Fees worksheet except for the Appraisal Fee, Loan Discount, Credit Report, Tax Service Fee, and Flood Certification.

2. Credit or charge (points) for the specific interest rate chosen:
Loan Discount and Compensation to Broker from lender will only be included in the cost if the appropriate checkbox is selected.

• The credit or charge for the interest.... checkbox assumes that there will not be a credit given to the customer nor a charge. This may only be selected by the lender or correspondent lender. 
• The Borrower receives a credit of... checkbox will give the borrower a credit in the amount of the Yield Spread Premium. The YSP credit will reduce line A. Adjusted Origination Charges.
  
  
  
• The Borrower pays a charge of.. checkbox will include loan discount, from the Good Faith Estimate, in line item A. Adjusted Origination Charges.

Charges For All Other Settlement Services (Page 2)

3. Required Services Selected by Mortgage Company:  Populates the fields from the Initial Fees Worksheet.

4. Title Services and Lender's Title Insurance - Populates from the 1100: TITLE CHARGES section of the Initial Fees Worksheet.

5. Owners Title Insurance: This field does not exit on the Initial Fees Worksheet, therefore you must enter the Owners Title Insurance directly on the Good Faith Estimate 2010 but not on the Initial Fees Worksheet.

6. Required Services That Borrower Can Shop For: The user defined fields do not exist on the Initial Fees Worksheet, therefore any fees that the borrower can shop for should be entered directly onto the Good Faith Estimate 2010 but not on the Initial Fees Worksheet.

7. Government Recording Charges - Populates from the 1200 GOVERNMENT RECORDING & TRANSFER CHARGES section of the Initial Fees Worksheet.  (Line item 1201 only)

8. Transfer Taxes - Populates from the 1200 GOVERNMENT RECORDING & TRANSFER CHARGES section of the Initial Fees Worksheet, with the exception of line item 1201 Recording Fees.

9. Initial Deposit in Escrow Account - Populates from the 1000: RESERVES DEPOSITED WITH LENDER section of the Initial Fees Worksheet.

10. Daily Interest Charges - Populates from line item 901 of the Initial Fees Worksheet.

11. Homeowner's Insurance - The Hazard insurance field will populate from line item 903 of the Initial Fees Worksheet.  The Flood Insurance does not populate from the Initial Fees Worksheet; however, and must be entered directly onto the Good Faith Estimate.

B. Charges for All Other Settlement Services - Calculates from the Total field under line item 3 plus line items 4 - 11, in the Charges for All Other Settlement Services section.

Tradeoff Table - The second and third column is optional. (Page 3)

• Insert a check into the Display Tradeoff Scenarios checkbox.
  
  
  • The first scenario populates from fields on the subject loan.
  • The second scenario provides an overview of the subject loan with lower settlement charges and a higher rate.
  • The third scenario provides an overview of the subject loan with a lower rate and higher settlement charges.

Using the Shopping Cart - optional (Page 3)

The shopping cart is not available as a screen  in Point. It is only available on the printed Good Faith Estimate (2010). This section can be used if you shop for rates and settlement charges from other originators.  You must manually fill this section in on the printed form.

• If the credit or charge for the interest rate on this loan is included in the Origination Charge checkbox is selected; A. Adjusted Origination Charges will equal the total amount of fees from the Good Faith Estimate, 800: ITEMS PAYABLE IN CONNECTION WITH LOAN section; excluding the Appraisal Fee, Loan Discount, Credit Report, Tax Service Fee, and Flood Certification.
  
  
• If the Borrower Receives a credit of... check box is selected; A. Adjusted Origination Charges will equal the total amount of fees from the Good Faith Estimate, 800: ITEMS PAYABLE IN CONNECTION WITH LOAN section; excluding the Appraisal Fee, Loan Discount, Credit Report, Tax Service Fee, and Flood Certification; minus the YSP, from the GFE.  (Note: This selection gives a credit of Compensation to Broker (YSP) section from the Good Faith Estimate. to the borrower)
  
  
• If the Borrower pays a charge of... checkbox is selected, A. Adjusted Origination Charges will equal the total amount of fees from the Good Faith Estimate, 800: ITEMS PAYABLE IN CONNECTION WITH LOAN section; excluding the Appraisal Fee, Credit Report, Tax Service Fee, and Flood Certification; plus the Loan Discount from the GFE. (Note: This selection indicates that the borrower will pay the discount points)