What Is The “New” GFE?
Along with its publication of the new RESPA rule, HUD posted the finalized form of the new GFE, now three pages in length. The first page contains general information regarding the Lender and Borrower, along with the important dates for when the stated interest rate and fee estimates expire, similar to the original form. Changes are evident, however, in “Summary of Your Loan” located in the center of the first page. The general loan information of principal, interest and term is provided; however, the following new fields have been added: • Initial monthly payment for principal, interest and private mortgage insurance (PMI). • The Lender must indicate whether the loan’s interest rate is adjustable by checking a “yes” or “no” box. If “yes,” the maximum rate that interest can adjust to must be supplied. • If adjustable, Lenders must provide the full dollar amount to which a monthly payment of principal, interest and PMI (if applicable) can rise, along with the first interest rate adjustm
