If the lender funds a transaction involving a mortgage broker and there is a credit to be given in Block 2 of the GFE, how does a loan originator calculate the amount of the credit?
For transactions involving a mortgage broker, the credit for Block 2 of the GFE is calculated as the net payment from the lender above the principal amount of the loan. The net payment from the lender includes any payments made from the lender to the broker. The resulting computation is stated as a dollar amount. The calculation of Block 2 is the same, whether or not the transaction is table funded.
Related Questions
- If there is a changed circumstance and the mortgage broker issued the GFE, may the lender issue the revised GFE reflecting the changed circumstances?
- If there is a changed circumstance, do the mortgage broker and the lender both need to retain documentation of the reasons for any revised GFE?
- What is the job of the mortgage broker?
