If a governmental loan program chooses a service provider such as the appraiser on a VA loan, should the settlement service be disclosed in Block 3 or Block 6 on the GFE?
If a governmental loan program chooses a settlement service provider, such as the appraiser on a VA loan, the settlement service should be disclosed in Block 3 on the GFE. *** 15) Q: If an adjustable rate mortgage (ARM) has a different periodic interest rate adjustment limit applicable to the first rate adjustment than the limit used for subsequent rate adjustments, how should the subsequent rate adjustment limits be disclosed in the Loan Terms section on page 3 of the HUD-1? A: To disclose limits on periodic interest rate adjustments, where different limits apply at different times in the life of the loan (such as for an ARM with a special adjustment limit applicable to the first adjustment), the settlement agent may either insert the maximum interest rate or the range of the change limits, such as 2-5%.
