How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 37705
Experience:  Retired (mostly)
Type Your Legal Question Here...
socrateaser is online now
A new question is answered every 9 seconds

I am about to refinance a loan, today. The Bank has changed

This answer was rated:

I am about to refinance a loan, today. The Bank has changed the GFE numbers (origination fee and credit to buyer) shortly before the closing day without me approving it. I can't make them change it back. What are my options and the relevant law?
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good afternoon. I certainly understand the situation and your concern.

Since you obtained your loan after January 1, 2010, the following items listed on the Good Faith Estimate (GFE) CANNOT increase:

The “Origination Charge” listed in Block 1
If your interest rate is locked, the “Credit or charge (points) for the specific interest rate chosen” in Block 2
If your interest rate is locked, your “Adjusted Origination Charges” listed in Box A
The Transfer Taxes listed in Block 8
The following items listed on the most recent Good Faith Estimate you received cannot increase in total by more than 10 percent at closing:

Services listed in Block 3, which are services for which your lender chooses the provider
Title services and lender’s title insurance charges listed in Block 4, if you use a company identified by your lender
Owner’s title insurance listed in Block 5, if you use a company identified by your lender
Charges listed in Block 6, if you select a company listed for those services in Block 6
Government recording charges listed in Block 7
The following items can change:

Charges for any services that you obtain from a company not listed by your lender
Title services, lender’s title insurance, and owner’s title insurance if you do not select a company identified by your mortgage originator
Your initial escrow deposit listed in Block 9
Your daily interest charges listed in Block 10
Your homeowner’s insurance listed in Block 11

As such, if the lender has changed something which they were not allowed to, they need to change it back. If they do have a right to, then the decision is up to you if you want to proceed. You certainly have a legal right to ask why these numbers changed and if you do not want to refinance with this lender, walk away.

Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.
Customer: replied 2 years ago.

My question was only about origination fee and credit to buyer. I am aware about other charges that can change up to 10% (it is right on the HUD statement) and that some cannot change. My question was about the relevant law and procedure that they should have followed. I submitted the application on 5/1 and they updated the numbers around Sep 20th. I am now concentrating on origination fee only. Can they change it w/o a specific process? They content they send me an updated FedEx with a new GFE numbers and I received it on 9/24. FedEx tracking number supports that but unfortunately I do not have this FedEx. Assuming that it is true -- was it a sufficient process for them to follow? It was just two weeks before the closing, well into the process. They have a "justification" that I refuse to accept but I don't want to go into much details here--just want to know the law on the process itself.

Thank you for the clarification. Allow me to opt out and another Expert can certainly help with this question. Please hold on.

Sorry for the delay. Different contributor here. This is a difficult question, which most attorneys are not able to answer. However, I believe I can assist you in your understanding of the applicable law.

Federal law (24 C.F.R. 3500.7(f)) controls the modification of a GFE during the real estate settlement process. In particular, a GFE can only be modified outside of the tolerance levels in the event of "changed circumstances," which are defined by 24 C.F.R. 3500.2(b) as:
  • (1)(i) Acts of God, war, disaster, or other emergency;
  • (ii) Information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided. This may include information about the credit quality of the borrower, the amount of the loan, the estimated value of the property, or any other information that was used in providing the GFE;
  • (iii) New information particular to the borrower or transaction that was not relied on in providing the GFE; or
  • (iv) Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.
  • (2) Changed circumstances do not include:
  • (i) The borrower's name, the borrower's monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information changes or is found to be inaccurate after the GFE has been provided; or
  • (ii) Market price fluctuations by themselves.
As you can see from the above, the origination charge must be based upon one or more of the specified changed circumstances, otherwise it is illegal and you can complain to HUD or sue the lender for damages under RESPA Section 5, which is also the federal Truth in Lending Act, and provides for damages generally of between $1,000-$4,000.

Note also that a GFE must be delivery to the borrower within three days of the date of the discovery of any changed circumstances. 24 C.F.R. 3500.7.

Please let me know if my answer is helpful and if I can provide further clarification or assistance.

And, thanks for using!
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 37705
Experience: Retired (mostly)
socrateaser and 7 other Legal Specialists are ready to help you

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Previous | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan

Meet The Experts:

  • Tina



    Satisfied Customers:

    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • Tina's Avatar



    Satisfied Customers:

    JD, BBA Over 25 years legal and business experience.
  • Ely's Avatar


    Counselor at Law

    Satisfied Customers:

    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • JPEsq's Avatar



    Satisfied Customers:

    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • Law Educator, Esq.'s Avatar

    Law Educator, Esq.


    Satisfied Customers:

    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • FiveStarLaw's Avatar



    Satisfied Customers:

    25 years of experience helping people like you.
  • Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.


    Satisfied Customers:

    7+ years of experience handling various legal matters.
  • Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.


    Satisfied Customers:

    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

Related Legal Questions