Completing the Good Faith Estimate

1. Completing theGood Faith Estimate Broker’s Best Contract Loan Processing www.brokersbestcontractloanprocesing.com

2. Good Faith Estimate (GFE) • The originator must provide a GFE within three business days of receiving an application • Application means: • Borrower Name • Borrower Income • Borrower Social Security Number • Property Address • Estimate of property value • Desired Loan Amount

3. SSPL • Lenders will be required to provide the borrower with a Settlement Service Provider List (SSPL) that includes settlement service provider names • This pertains to any settlement service where the service is required but the borrower can select a provider • The list must include at least one company per service

4. Fee Tolerances • Charges that cannot increase at settlement: • Origination charges including the loan originator fees and broker compensation • Discount or credit for a specific interest rate locked • Adjusted origination charges after the interest rate is locked • Transfer Taxes

5. Fee Tolerances • Charges that cannot increase in the aggregate by more than 10% at settlement: • Required settlement services that the lender selects • Title services and lender’s title insurance if selected by the lender or if borrower uses a company identified on the SSPL • Owner’s title insurance if borrower uses a company identified on the SSPL • Required settlement services (such as pest inspections) if borrower uses a company identified on the SSPL • Government Recording Charges

6. Fee Tolerances • Charges the can increase at settlement: • Required settlement services that the borrower can select, if the borrower selects a service provider not listed on the SSPL • Title services and lenders title insurance, if the borrower selects a service provider not listed on the SSPL • Owner’s title insurance, if the borrower selects a service provider not listed on the SSPL • Initial deposit for borrower escrow/impound account • Daily interest charges • Homeowner’s insurance

7. Page 1Originator Information • Name of Originator • Company Name Required • Individual Originator Name Optional • Originator Address • Office Address • Originator Phone Number • Office Phone Number Required • Individual Originator Phone Optional • Originator Email

8. Page 1Important Dates • The interest rate is available through • Date and Time • Settlement Charges must be available for a minimum of 10 days from the date of GFE • Number 3 • N/A if rate is floating • Enter # of days of lock period minus 4 business days if rescindable transaction • Enter # of days of lock period minus 1 business day for all other transactions • Enter 7 days before settlement rate must be locked

9. Page 1Summary of Your Loan • Initial loan amount • Including UPMIP, VAFF, or USDA Guaranty Fee • Loan Term • Initial Interest Rate • Note Rate at time of closing • Initial Payment • P&I + mortgage insurance

10. Page 1Summary of Your Loan • Can rate rise? • Yes, if ARM • Can loan balance rise? • No • Can payments increase? • Yes, if ARM • Prepayment penalty? • No • Balloon payment? • Yes, if balloon program

11. Page 1Escrow Account Information • Complete the “amount owed of $” • Enter the P&I + monthly MI(P) in the box • Check Yes or No whether the escrow/impound account is required

12. Page 1Summary of your Settlement Charges • This is a summary carried over from page 2 of the GFE • Complete Box A, Box B and Box A + B

13. Page 2 Our Origination Charge – Wholesale Transaction • All Lender and Broker Charges Disclosed Together • Origination Fee(s) • Mortgage Broker Fee • Admin Fees • Processing Fees • 203K Supplemental Origination Fee • Underwriting Fee • Lender Compensation to Broker (YSP) • Doc Prep Fees • Subject to Zero Tolerance • Disclose accurately as you will not be allowed to make any changes

14. Page 2 Our Origination Charge Retail Transaction • All Lender and Broker Charges Disclosed Together • Origination Fee(s) • Admin Fees • Processing Fees • 203K Supplemental Origination Fee • Underwriting Fee • Doc Prep Fees • Disclose accurately as you will not be allowed to make changes even if you have to broker the loan to another lender

15. Page 2Credit or Charge • First box is only completed if the loan is a retail transaction and there is no credit to the borrower for closing costs and no discount points charged for the rate • Second box is completed on wholesale transactions and must match the lenders pricing if loan is priced with YSP • Second box is completed on retail transactions if the borrower will receive a lender credit at closing to pay closing costs • Third box is completed for wholesale or retail transactions and must match the lenders pricing if loan is priced with discount • Third box is completed if there is a temporary buydown on the transaction

16. Page 2Your Adjusted Origination Charges • Box A represents the total of Box 1 “Your Origination Charge” • Minus the amount of credit OR • Plus the amount of discount • Carry this amount forward to Page 1 • Summary of your settlement charges

17. Page 2Block 3 Required Services • Required services that the lender or broker select • Appraisal • Credit Report • Lenders Inspection/Final Inspection • Upfront MIP • VA Funding Fee • Rural Housing Guaranty Fee • Mortgage Insurance Premium • MERS • Flood/Life of Loan • Tax Service • Subject to 10% tolerance

18. Page 2Block 4 Title Services • Title/Closing/Settlement • Title Insurance – Lender Coverage • Title Guarantee • Title Endorsements • Title Search • Name Search • Doc Preparation/E-mail print Fee • Settlement Fee • Attorney Fee • Courier, messenger, overnight delivery • Recording Service Fee • Subject to 10% tolerance if service selected from the originator’s SSPL

19. Page 2Block 5 Owner’s Title Insurance • Owner’s Title Insurance • Title Insurance – Owner Coverage • Subject to 10% tolerance if service selected from the originator’s SSPL

20. Page 2Block 6 Required Services • Required services that the borrower can shop for • Include at least 1 company on your SSPL • Inspections • Pest • Well/Septic • Certifications • Survey • Counseling Fee for Reverse Mortgage • Subject to 10% tolerance if service selected from the originator’s SSPL

21. Page 2Block 7 Recording Fees • Government Recording Fees • Recording Fee – Transfer Deeds • Recording Fee – Mortgage/DOT • Recording Fee – Trust • Recording Fee – Power of Attorney • Subject to 10% tolerance

22. Page 2Block 8 Transfer Taxes • Transfer Taxes • City/County/Tax/Stamps • State Tax/Stamps • Intangible Tax • Residential Mortgage Loan Fee • Mortgage Tax • Subject to zero tolerance • Find out what the tax stamps will be before you issue your GFE

23. Page 2Block 9 Deposit for Escrows • Initial deposit to establish the escrow/impound account • Property Taxes • Hazard Insurance • Mortgage Insurance • Not subject to tolerance

24. Page 2Block 10 Interest • Daily Interest Charge • Per Diem • Estimated # of days • Estimated Settlement date • Not subject to tolerance

25. Page 2Block 11 Insurance • Homeowner’s Insurance • Hazard • Flood • Wind • Must include at least one company on SSPL • Not subject to tolerance

26. Page 2Total Estimated Charges • Block B • Total of charges disclosed in blocks 3 – 11 • Carry over to page 1 • A + B • Total Estimated Settlement Charges • Carry over to page 1

27. Page 3Using the Tradeoff Table • Complete all the fields in the left column • The loan in this GFE • Complete the other 2 columns at your option

28. Page 3Shopping Cart • Complete all fields in the left column • This loan • The borrower may use the other columns to shop and compare