If the borrower has locked the interest rate, how should the loan originator complete Line 4 in the Important dates section of the GFE?
The loan originator should complete Line 4 in the Important dates section of the GFE with Not Applicable or N/A after the borrower has locked the interest rate. 31) Q: May the originator require the borrower to sign consents to verify employment, income or deposits prior to issuing a GFE without violating 3500.7(a)(5)s prohibition on requiring the applicant to submit supplemental documentation to verify information provided on the application? A: No, a loan originator may not require a borrower to sign consents to verify employment, income or deposits as a condition of issuing a GFE as such a requirement may inhibit borrowers from shopping for the best loan by leading borrowers to believe that they are committed to obtaining a loan from that loan originator (see 24 CFR 3500.7(a) (5) and (b) (5)). However, the borrower may voluntarily sign consents prior to the issuance of the GFE to facilitate the loan process.
Related Questions
- If a GFE has been provided and the interest rate has not been locked, can the loan originator provide a revised GFE when the borrower later locks the interest rate?
- If the borrower selects a service provider that was not selected or identified by the loan originator, is this considered a changed circumstance?
- Can a loan originator e-mail a GFE to a borrower?
