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Old 03-05-2010, 09:19 PM
 
4 posts, read 16,651 times
Reputation: 11

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Hey everyone,

We are at the end of our escrow on a house in Los Angeles. We received a closing cost statement from our lender, Bank of America, and it is about $7,000 more than the good faith estimate that was provided to us when we started the escrow process. Is this normal? I do know that because of the change in when we were supposed to close (end of Feb rather than beginning of March), our interest payment has changed, but it shouldn't be $7,000.

We are asking our realtor and loan agent about it, but wanted to know other people's experiences.

Thank you!
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Old 03-06-2010, 04:58 AM
 
Location: Wake Forest, NC
835 posts, read 3,522,881 times
Reputation: 646
the issue is not so much that there was a change but what changed? Section 800 fees are lender/ broker related and should not have changed at all and in fact if you completed your application after 01/01/10 can't change up by 1 thin dime unless a major change occurred during the process which required additional fees but you would have been issued an updated GFE if this happened.

Compare the 2 and post what changed and you can get input to the vailidity of those changes.
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Old 03-06-2010, 05:15 AM
 
983 posts, read 3,479,240 times
Reputation: 357
OP,

It seems that you don't understand the lines in the HUD-1 statement. Compare it with the GFE line by line. If they differ, ask why. There will be additional lines that were not in GFE, which is normal. Ask your lawyer, if you don't understand.
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Old 03-06-2010, 07:37 AM
 
Location: MID ATLANTIC
7,580 posts, read 17,570,438 times
Reputation: 8060
The date you signed and dated your loan application is key. If after Jan 1, 2010, please post back and we may be able to save you a few thousand dollars. The big box banks have support staff completing the new GFE's (after Jan 1) and they are making serious mistakes and banks are paying THOUSANDS for their buyers at the closing table.
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Old 03-07-2010, 12:23 AM
 
4 posts, read 16,651 times
Reputation: 11
Thanks for all the help. We signed the GFE after Jan 1, 2010.

Here's our breakdown. I'm basically seeing things on each sheet that do not appear on the other. Any advice would help!

ESCROW GFE
Initial Deposit (as credit) - $10,000
2nd half 2009/2010 taxes @ 2,987.10 per 6 months 2/22/10 - 7/1/10 - $2140.76
Lender/Mortgage Premium for $292k: Fidelity Nat'l Title - $490
Endorsement (est): Fidelity - $200
Sub Escrow Fee: Fidelity - $75
Recording Fees: Fidelity - $98
Messenger Fees (est): Fidelity - $75
Escrow Fee - $1021.25
Loan Tie In Fee - $200
Document Preparation Fee - $100
Messenger Fee - $55
Refundable Padding - $350
Storage and Imaging Fee - $50
New to Bank of America (as credit) - $292k
Interest Adjustment from 2/21/10 to 3/1/10, 10 days @ 39.5417 (we know this changed) - $395.42
Flood Determination: BoA - $26
Underwriting Fee: BoA - $695
Tax Registration: BoA - $84
Processing Fee: BoA - $795
Credit Report: BoA - $29
Notary - $200
Hazard Insurance - $700

Escrow GFE Total: $3,497.91

BANK OF AMERICA GFE
Origination Charge - $6,720
Credit for Rate - $4,015
--Total Adjusted Origination Charge - $2,705
Required Service Appraisal - $600
Required Service Credit Report Fee - $29
Required Service Flood Check - $26
Required Service Tax Service - $84
Title Services and Lender's Title Insurance - $3,405
Owner's Title Insurance - $0 (not typo)
Termite Pest Inspection - $200
Government Recording Charges - $150
Transfer Taxes - $2,044
Initial Deposit For Escrow (to pay future taxes, insurance) - $1,186.26
Daily Interest Charges, 30 days @ $39 - $1,170
--Total Settlement Charges - $8,894.26

BoA GFE Total - $11,599.26
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Old 03-07-2010, 07:44 AM
 
Location: MID ATLANTIC
7,580 posts, read 17,570,438 times
Reputation: 8060
The application date is the key, not the GFE date. The "final rule" mandates an accurate GFE early in the application process. Prior to January 1, only best efforts were required with no consequences for the lender being wrong. After January 1, the bank must pay on your behalf if they are over in 0 tolerance categories. We are hearing stories of the big box banks paying thousands for being wrong (their back office is preparing the forms, not the loan officers).

But to answer your question, a quick glance shows that the Bank of America estimate does not reflect your earnest money credit of 10K. Once it's considered, the next major difference would be origination charge and any lender credits (credit for rate).

I would definitely inquire about the owner's title insurance. I don't see it listed in either estimate. Owner's title insurance is optional, so at the time this was prepared (prior to Jan 1), it wasn't required to be listed (or it could be lumped together w/ the lender's title insurance).
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Old 03-08-2010, 12:49 PM
 
12 posts, read 62,839 times
Reputation: 13
You guys are over-thinking the 1/1/10 issue. This is Really simple: Took me 2 secs to see it:

"Initial Deposit For Escrow (to pay future taxes, insurance) - $1,186.26"
:Taxes and Insurance was not calculated in the 1st GFE because it's difficult for an ordinary escrow company to estimate what it would be until the Bank gets the assessment from the county and B of A contacted your Insrance agent to finally get the premium calculated in order to get to closing: you have 3-4 months credited to cover in escrow for taxes and Insurance is normally a full 1st year credited to escrow. Wasn't in the original. Nothing out of the ordinary there. Problem is MOST Loan Officers fail to estimate those numbers when they get a 1st GFE to you. If they even know how to..

"Daily Interest Charges, 30 days @ $39 - $1,170": 1st month 'pro-rated' paid so you can start up on time the following month making regular payments.Only B of A would illustrate that.

"Origination Charge - $6,720": Ahhhh, your broker,LO or somebody has to make a living right?? There it is. Wasn't in the original. $4,015 of it was used to pay your B of A points below (Credit for Rate)...
Broker only makes net $2,705 that what this is"--Total Adjusted Origination Charge - $2,705"
"Credit for Rate - $4,015": You 'bought' that rate. what is it, somewhere in the low 5% or maybe 4.xx%? these are the "points" that B of A is charging to give you that "smoking rate". Nothing in the final GFE is out of the ordinary or strange, it's just sticker shock because the person that did the 1st one failed to fully prepare you of the actual costs that would be involved. There's your $8grand....

Looks like you're fine, most purchases in SoCal have anywhere from $15k-25K in costs. BTW, I'm a Broker in San Diego, so I'd know. Sign the paperwork. Congratulations on your new home!!!

Last edited by Swil; 03-08-2010 at 01:04 PM..
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