Compliance Q&A: Good Faith Estimate Clarifications
HUD provides needed guidance.
Q: True or false? If a credit union allows a borrower to shop for settlement services from a limited list of settlement service providers, the estimated charges for these services should be documented in Box 6, "Required services that you can shop for," on the Good Faith Estimate (GFE) form.
A: False. According to the Department of Housing and Urban Development (HUD), when a loan originator limits a borrower's choice to a particular settlement service provider or permits a borrower to shop for settlement services from a limited list of service providers, the estimated charges for such services must be documented in Box 3, "Required services that we select," on the GFE.
Find this clarification in HUD's first edition of "RESPA Roundup," which provides helpful RESPA information to consumers and the lending industry.