There has been some question about the Required Service Providers List. Is this a list that is attached to all Good Faith Estimates or typed on the face of the Good Faith Estimate?
The "list of providers" is required if a lender maintains a controlled list of required providers from which a provider is chosen (by the bank). This means you require the borrower to use one from the list and you do not yet know which one you will choose. If there are five or more choices, you use a list. If four or less, list them all as required providers.
If you have only one required provider for a particular service, or have a list and have already chosen one from the list, and the borrower pays some or all of the cost of the service, you disclose that provider. In this case, you disclose the information in the required provider section of theGFE. Remember to fill in all the blanks
-HUD Line #
- Nature of service
- estimated cost
- Name, address, and telephone number of provider
- Nature of any relationship ("x" is a borrower, "x" is a depositor, of "x" is used frequently)
First published on BankersOnline.com 1/15/01