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REV072213KJ
GFE Validator User Manual
Wholesale Originations
For Mortgage Professionals Only
Broker Tutorial
Table of Contents
 Introduction
 What Is a Good Faith Estimate?
 GFE Validator
 Overview
 Validation Process
 Process Flow Diagram
 Accessing the GFE Validator Screen
 Additional Required Information (County and Recording Office)
 Additional Required Information (State Specific)
 GFE Validator Screen Overview
 GFE Validation Rules
 Calculating and Adjusting Fees
 Automatically Calculated Fees
 Historical Fees Tolerance Check
 Choosing Loans For the Tolerance Check
 What If the Loan Fails the Validation?
 Error Messages
2
What Is a Good Faith Estimate?
 A Good Faith Estimate (GFE) is a document required by the Real Estate
Settlement Procedures Act (RESPA) that must be provided by a mortgage
lender or broker to a customer within 3 business days of applying for a
loan. The GFE must include an itemized list of all fees and costs, called
settlement or closing costs, associated with a home loan, including
inspections, title insurance, taxes and other charges.
 The GFE fees are only an estimate and the final closing costs presented on
the HUD-1 may be different.
3
GFE Validator Overview
 The GFE Validator is a tool located in the Interbank Portal that helps
brokers ensure the GFE is accurate prior to submitting it to Interbank.
Using the Validator minimizes the number of loans the Receiving
department has to reject due to various GFE fee discrepancies.
 The validation is performed on the fees the broker enters in the Validator
screen. The broker must enter the same fees that were used to generate
the most recent GFE provided to the borrower.
 The broker must certify that the Loan Summary and Escrow Account
Information matches the information listed on Page 1 of the GFE to
complete the validation process.
4
GFE Validation Process
 GFE validation is available for both locked and floating loans any time prior
to submitting the loan in Interbank’s Portal.
 After the broker registers the loan and submits it to the GFE Validator, the
system automatically calculates certain fees based on the loan profile. The
system downloads fees based on the information Interbank has about the
loan characteristics.
 Interbank uses a 3rd party vendor to provide fee quotes. The title
insurance fee quotes are provided by a nationally chartered title company.
5
GFE Validation Process (cont.)
 After the GFE passes the validation, IMC’s GFE Specialist reviews the GFE
that was submitted with the file (a copy of what was given to the
borrower). If the GFE does not match the validator numbers (meaning the
validator was manipulated to allow acceptance of the GFE), IMC will not
accept the file submission and the loan will be subject to Interbank’s
resubmission policies.
 If the GFE fails the validation, but the broker still feels the fees are correct,
the broker can submit a HUD-1 and/or applicable invoice to Interbank’s
manual review queue. If GFE Specialists verify the fees are indeed correct,
they will set up a GFE Validator bypass so that the loan can be submitted as
is. If it doesn’t pass the manual review, the loan will be cancelled and
subject to resubmission policies.
 All new loans must go through the validation process prior to being
submitted to Interbank, unless bypassed (see above).
6
GFE Validation
Process Flow Diagram
No
Broker submits
the invoice/HUD
1 for manual
review
Pass?
Fail
Broker uploads
or registers the
loan via the
Interbank Portal
Broker receives
the GFE
Validator
results
Loan is rejected
Yes
Fail
Broker uploads
the loan
documents
GFE fees are
validated by
GFE specialists
Pass
Pass
Loan opener
proceeds with the
loan submission
7
Accessing the GFE Validator Screen
 There are 3 ways to access the GFE Validator screen:
 From the My Pipeline screen, click the GFE icon
located in the
Tools column on the right side of the screen.
8
Accessing the Validator Screen (cont.)
 From the General Information screen, click the Validate GFE icon
located at the right side of the screen.
9
Accessing the Validator Screen (cont.)
 From the Upload Document(s) to File Setup screen, click the “Yes”
radio button.
A message displays that prompts you to validate your GFE.
 Click “here” to start the GFE Validation process.
10
Additional Required Information
(County, Recording Office, and State Specific)
 The GFE Validator generates fees based on the data Interbank has on the
loan. After the broker registers the loan, Interbank has most of the data
required to quote fees; however, depending on the jurisdiction the
property is located in, the validator may prompt the broker to provide
additional information prior to displaying the GFE Validation screen.
 Examples of data the broker might be required to provide include:
 The county that the subject property is located in (if it is not in the file).
 The name of the recording office where the documents will be recorded.
This information is only requested if the subject property is located in a
jurisdiction that has multiple filing offices. The name of the recording office
can usually be obtained from the title company. This information is
necessary for the system to accurately quote recording charges.
 State specific information. The information requested depends on the state
the subject property is located in.
11
Additional Required Info (County)
 Select the county that the subject property is located in.
12
Additional Required Info
(Recording Office)
 Select the recording office that will be used by the title company.
13
Additional Required Information
(State Specific)
 Depending on the state the subject property is located in, the following
questions may be asked:
State
CA
Question
Is this document a Multi-Caption
document?
Explanation
CA
How many captions or titles are on this
document?
California’s recording statutes require a $10 fee for each
title and caption (e.g. mortgage, lien) even if they are filed
as a single document. Filing a document with multiple
titles and captions could impact the amount of recording
fees owed by the borrower.
CA
Is the recording exempt from the
additional Real Estate Fraud Prosecution
Trust Fund Fee pursuant to Cal Govt.
Code § 27388?
Is there a preliminary change of
ownership form accompanying this
document?
Is the buyer a qualified first time buyer
of owner occupied residential property?
CA
DE
14
Additional Required Information
(State Specific)
State Question
GA
Is the debt to be refinanced with the
same lender and the original borrower
(must be all of the original borrowers if
there is more than one)?
HI
Is the property a condominium or a
single family home for which the
purchaser is ineligible for a county
homeowner's exemption from property
tax?
KS
Is the debt to be refinanced with the
same lender?
KS
Is the Mortgage Registration Fee
Affidavit included with this recording?
Explanation
Kansas law requires that a registration fee of 0.26% of the
secured mortgage loan be paid before the mortgage can be
recorded.
However, the borrower does not owe the registration fee if
the amount has been “verified by affidavit to be principal
indebtedness covered or included in a previously recorded
mortgage or other instrument with the same lender or
their assigns upon which the registration fee herein
provided for has been paid.”
Essentially, for a refinance, the borrower must pay the
registration fee if he or she changes lenders or if the loan
amount increases.
15
Additional Required Information
(State Specific)
State Question
LA
Is the property a single family or a
residential double?
LA
Was the previous policy your own
owner's policy?
MD
MD
MD
MD
MD
MI
Explanation
Using the previous owner’s title insurance policy may
qualify the borrower for a reissue/refinance rate on the
new title insurance policy.
For Deed recording purposes - is this
property solely a principal residence?
(Not a mix of principal residence and
rental property).
Is the buyer a qualified first time buyer
of owner occupied residential property?
Is the property a non-principal residence
and is the borrower the same or has the
borrower assumed this debt from the
previous mortgagor?
Is this property solely a principal
residence? (not a mix of
principal residence and rental property)
On this refinance, has the original
purchase money mortgage been on
record more than 12 months?
Is the loan to be refinanced with the
same lender?
16
Additional Required Information
(State Specific)
State Question
Explanation
MN
Is there a well certificate being recorded Minnesota law requires a well disclosure certificate to be
with this document?
filed before the document can be recorded. The fee for this
is $50.
However, a well disclosure certificate does not need to be
filed if the following situations exist:


The subject property is an individual condo
There are no wells on the property

MN
Is this refinanced debt an alteration of
the original amount of debt?
MO
Is the previous policy an owner's policy?
NJ
Is this property classified as one of the
following: (1) Class 2 residential; (2) Class
3A farm property (regular), but only if the
property includes a building or structure
intended or suited for residential use and
any other real property.
There have been no new wells added to the property
since the last well disclosure certificate was filed
Minnesota law requires the mortgagor to pay a 0.0023%
tax on a debt that is secured by a recorded mortgage.
However, if the original mortgage is amended or extended
without securing new debt or increasing the amount of the
existing debt (e.g. refinancing the original debt), no
additional tax is due.
Using the previous owner’s title insurance policy may
qualify the borrower for a reissue/refinance rate on the
new title insurance policy.
New Jersey law requires an additional 1% recording fee
for properties whose purchase price exceeds $1,000,000.
This recording fee generally applies to residential
property, including condos, in excess of the statutory
amount.
17
Additional Required Information
(State Specific)
State Question
NV
Is the loan to be refinanced with the
same lender?
OK
Is this refinanced debt an alteration of
the original amount of debt?
Explanation
Oklahoma law states that a mortgage registration tax must
be paid before the document can be recorded.
However, “any contract or agreement by which the
indebtedness secured by any mortgage is increased or
added to shall be deemed a mortgage of real property”…
“and shall be taxable as such upon the amount of such
increase or addition.”
Essentially, loan modifications and refinance transactions
only require a registration tax if the new loan amounts
exceed the original loan amounts.
VA
VA
VA
WA
Is the book and page of the prior
mortgage included with this recording?
Is the amount of the existing debt
certified?
Is the debt to be refinanced with the
same lender?
How many captions or titles are on this
document?
Washington’s recording statutes require a $72 fee for each
title and caption (e.g. mortgage, lien) even if they are filed
as a single document. Filing a document with multiple titles
and captions could impact the amount of recording fees
owed by the borrower.
18
GFE Validator Screen Overview
 The GFE Validator screen displays information in two main categories:
 GFE Details
 GFE Validation Results
 Brokers must enter and verify information described in the GFE Details
area on the left side of the screen. The GFE Details area consists of the
following four sections:
1. Compensation Basis, Impounds, and Important GFE Dates
2. Loan Summary and Escrow Account Verification
3. Broker Certification and Recording Office
4. Entering Fees and Adding/Updating Impounds
 The GFE Validation Results on the right side of the screen consist of a
section for informational messages, warnings, and errors.
19
Compensation Basis,
Impounds, and Important GFE Dates
Select the
compensation
basis and
“Yes” or “No”
for Impounds.
Enter the GFE
date listed on
Page 1 of the
GFE.
Enter the
date listed on
Page 1 of the
GFE, Box 2.
This section
will not
display until
both dates
have been
entered in the
fields above.
Review the
highlighted
dates and
verify that
they match
the dates on
Page 1 of the
GFE.
20
Important GFE Dates for Locked Loans
 The following requirements apply to locked loans:
 The Estimate Available Through date, interest rate for this GFE date (#1),
and estimate for all other settlement charges date (#2) should match.
 #3, the rate lock period, must reflect the number of days of the lock period.

#4, the number of days available to lock the rate, should state “NA”.
These three
dates must
match.
Locked loans must have
“NA” in this field.
Verify the rate
lock period
matches the
GFE. This field
cannot state
“NA”.
21
Important GFE Dates for Unlocked Loans
 The following requirements apply to unlocked loans:
 The GFE Date must match the interest rate for this GFE date (#1).
 The Estimate Available Through date must match the estimate for all other
settlement charges date (#2).
 #3, the rate lock period, must state “NA”.
 #4, the number of days available to lock the rate, must reflect “1 or more”.
These
two
dates
must
match.
Must
reflect
“1 or
more”.
These two
dates
must
match.
Unlocked
loans
must have
“NA” in
this field.
22
Loan Summary and
Escrow Account Verification
Verify all highlighted
areas match your GFE
Loan Summary and
Escrow Account
Information (GFE Page 1).
Select “No” if an escrow
account is not required
or “Yes” if it is.
23
Broker Certification
and Recording Office
Check this box to certify that the
data matches the borrower’s GFE.
Select the Recording Office that
will record the fees.
24
Entering Fees and
Adding/Updating Impounds
All fees must match the
fees listed on the
borrower’s GFE. Review
the GFE and, if necessary,
adjust or delete values.
This row lists the total
fees for each Box.
Impounds must match
the information on the
borrower’s GFE. Review
the impound
information on the GFE
and, if necessary, edit
the values here.
25
GFE Validation Results
 The Validation Results section provides feedback on the submission.
Errors must be addressed
before proceeding with
the validation.
The GFE may be
validated with
outstanding warnings;
however, please review
and address all warnings
before proceeding.
26
Calculating and Adjusting Fees
 The system requires the Appraisal fee to be entered (Box 3). The
appraisal fee should be between $150 and $750. It is mutually
exclusive with the Property Inspection Waiver (PIW) fee, so if an
Appraisal fee exists, there cannot be a PIW fee.
 The system inputs the PIW fee (Box 3), if applicable. This fee is
charged for DU Refi Plus and HARP loans. The required amount for
this fee is $75. It is mutually exclusive with the Appraisal fee, so if a
PIW fee exists, there cannot be an Appraisal fee.
 The broker will not be able to adjust the following fees and credits:






LPC Lender Compensation (Box 1)
Administration fee (Box 1)
Discount Points (Box 2)
Lender Credit To Borrower (Box 2)
LPC Premium Rate To Borrower (Box 2)
Transfer Taxes (Box 8)
27
Calculating and Adjusting Fees (cont.)
 The GFE Validator requires the user to enter the Lender Title fee
(Box 4).
 The broker must enter 3rd party fees in the following boxes:
 Owner’s Title Insurance (Box 5)  The GFE Validator allows the
broker to decrease this fee by up to 10% of the 3rd party pulled fee.
 Recording Charges (Box 7)  The GFE Validator allows the broker to
decrease this fee by up to 20% of the 3rd party pulled fee.
 County, State, and City Transfer Taxes (Box 8)  The GFE Validator
uses the 3rd party pulled fee and does NOT allow the broker to
change it.
28
Calculating and Adjusting Fees (cont.)
 The broker may adjust or delete fees.
 To adjust fees, the broker must:
1. Click “Adjust” located to the right of the fee information.
2. Enter the corrected information.
3. Click “Update” to retain the corrected information or “Cancel” to
cancel the changes.
29
Automatically Calculated Fees
 The GFE Validator automatically calculates the Administration fee
(Box 1).
 The system automatically computes the Origination charge (Box 1)
and the Borrower Credit or Charge (Box 2).
 If the fees are lender paid, the Validator calculates the LPC Lender
Compensation fee (Box 1). If the loan is locked, the Credit/Charges
fee (Box 2) is automatically calculated. If it is not locked, the value
remains at the default setting of 0.
 If the fees are borrower paid, the system provides the correct
Origination charge (Box 1). The default setting for this box is 0; the
broker must input the applicable Origination charge.
 If the loan is locked, the Lender Credit To Borrower fee (Box 2) is
automatically calculated. If it is not locked, the value remains at the
default setting of 0.
30
Historical Fees Tolerance Check
 The purpose of the “tolerance check” validation is to ensure that the
fees on the GFE are not under-disclosed by more than 20% in Boxes
4 & 7.
 The GFE Validator compares the current loan to loans the broker
previously closed that have similar characteristics. The system
calculates the average fees of the broker’s closed loans and
compares them to the fees of the current loan.
31
Choosing Loans For the Tolerance Check
 The system uses the following criteria when choosing which closed loans to use for
the historical fee tolerance check:





Broker
State
Funded in the last 12 months
Loan purpose (refi, purchase, etc.)
Loan amount range (+/-20%)
 If the broker has less than 10 loans that share the above criteria, the system obtains
an average for each box based on the following criteria:




State
Funded in the last 12 months
Loan purpose (refi, purchase, etc.)
Loan amount range (+/-20%)
 If the state has less than 10 loans that share the above criteria, the system obtains
an average for each box based on the following criteria:
 Funded in the last 12 months
 Loan purpose (refi, purchase, etc.)
 Loan amount range (+/-20%)
32
What If the Loan Fails the Validation?
 If the loan fails the GFE Validation process, the system displays a
corresponding error message on the GFE Validator screen. Error messages
are different than warning messages. Error messages display in red and
must be corrected before the system will validate the GFE. Warning
messages display in yellow and do not require corrections to proceed.
 If the broker feels that the GFE presented to the borrower is valid, the
broker is free to submit the GFE for manual review by clicking the link
provided in the error message.
 If the GFE is invalid due to incorrect dates, missing fees, or under-disclosed
fees, Interbank will reject it. The lock/registration will be cancelled. If this
occurs, Interbank will require a new application with a new application
date executed by the borrowers and originator, as well as new disclosures
dated in accordance with the new application. The loan will be subject to
worst-case pricing.
33
Example of a Successful GFE Validation
 A message displays that states the GFE data is valid and the loan can be submitted.
Click “Preview GFE” to
preview and print the
GFE.
34
Example of an
Unsuccessful GFE Validation
 The Validation Results display a message that states the GFE is not valid and the
loan cannot be submitted. The applicable error messages display as well.
35
Error Messages
 The following table describes possible error messages for fees:
Validation Rule Name
Error Message
APPRAISAL FEE
Incorrect Appraisal fee amount. Valid values: [$150 - $750].
APPRAISAL FEE
Missing Appraisal fee.
APPRAISAL FEE
Missing Property Inspection fee.
ATTORNEY FEE
It looks like you added an attorney fee. Attorney fees are not related
to title company document preparation fees and should only be used
to represent the borrower’s attorney fees.
CHAIN OF TITLE FEE
Missing Chain Of Title fee or improper amount. Valid values: [$0 $150].
CITY PROPERTY TAXES
Missing City Property Taxes Impound.
CONDO QUESTIONNAIRE
Missing Condo Questionnaire fee or entered value must be greater
than 0.
COUNTY PROPERTY TAXES
Missing County Property Taxes Impound.
CREDIT REPORT CHECK
Missing Credit Report fee or improper amount. Valid values: [$55 $100].
36
Error Messages (cont.)
Validation Rule Name
Error Message
DISCOUNT POINTS
Missing Discount Points fee.
DOC REVIEW FEE
Missing Doc Review fee.
DOC REVIEW VALUE CHECK
Incorrect value for Doc Review fee. Must use 250.00 for purchase
loans and 165.00 for refinance transactions.
Missing Email fee or improper amount. Valid values: [$0 - $100].
EMAIL FEE
ENDORSEMENT FEE
ESCROW FEE
FIELD REVIEW
FLOOD CERTIFICATION
GFE BOX 1 BORROWER PAID
GFE BOX 1 LENDER PAID
GFE BOX 2 LOCKED NET BUY >= 100 BORROWER
PAID
GFE BOX 2 LOCKED NET BUY >= 100 LENDER PAID
Missing Endorsement fee or improper amount. Valid values: [$0 $250].
Missing Closing/Escrow fee or entered value must be greater than 0.
Missing Field Review fee or improper amount. Expected values: [$225
- $600].
Remove Flood Certification fee; it is included in the Administration
fee.
LPC Lender Compensation is not allowed in GFE Box 1.
Only Admin, Doc Review and LPC Lender Compensation fees are
allowed in GFE Box 1.
Only Lender Credit to Borrower fee is allowed in GFE Box 2 for
borrower paid loans when NetBuy is >= 100.
Only LPC Premium Rate Credit To Borrower fee is allowed in GFE Box 2
for borrower paid loans when NetBuy >= 100.
37
Error Messages (cont.)
Validation Rule Name
Error Message
GFE BOX 2 LOCKED NET BUY < 100
Only Discount Point fee is allowed in GFE Box 2 when NetBuy < 100.
GFE BOX 2 NOT LOCKED BORROWER PAID
Only Lender Credit To Borrower fee is allowed in GFE Box 2.
GFE BOX 2 NOT LOCKED LENDER PAID
GUARANTY FEE
Only LPC Premium Rate Credit To Borrower fee is allowed in GFE Box 2
for lender paid locked loans.
Missing Guaranty fee or improper amount. Valid values: [$0 - $10].
HAZARD INSURANCE
Missing Hazard Insurance Impound.
HAZARD INSURANCE
Hazard Insurance Premium is required for purchases.
HAZARD INSURANCE
INTEREST RATE CHECK
Hazard insurance premium may need to be disclosed on the GFE if the
current insurance premium expires within 45 days of closing. Please
check with the borrower to make sure you have disclosed this
correctly.
Interest Rate is 0 for this loan.
LENDER CREDIT TO BORROWER
Missing Lender Credit To Borrower fee.
LENDER CREDIT TO BORROWER NOT LOCKED
Missing Lender Credit To Borrower fee.
LENDER TITLE INSURANCE
Missing Lenders Coverage fee.
LIEN RELEASE FEE
Missing Lien Release fee or improper amount. Valid values: [$0 - $75].
38
Error Messages (cont.)
Validation Rule Name
Error Message
LPC LENDER COMPENSATION
Missing LPC Lender Compensation fee.
LPC LENDER COMPENSATION VALUE CHECK
Incorrect value entered for LPC Lender Compensation fee. Must equal
the broker’s compensation amount for the loan.
LPC Lender Compensation fee must be 0 for retail loans.
LPC LENDER COMPENSATION VALUE CHECK FOR
RETAIL
LPC PREMIUM RATE CREDIT TO BORROWER
Missing LPC Premium Rate Credit To Borrower fee.
LPC PREMIUM RATE CREDIT TO BORROWER NOT
LOCKED
MESSENGER FEE
Missing LPC Premium Rate Credit To Borrower fee.
NOTARY FEE
Missing Notary fee or improper amount. Valid values: [$0 - $250].
ORIGINATION FEE
Missing Origination fee.
ORIGINATION FEE
Missing Origination fee or value must be greater than 0.
OWNER'S TITLE INSURANCE FEE
Owner’s Title Insurance fee is not applicable to refinance loans.
OWNER'S TITLE INSURANCE FEE
Missing Owner’s Title Insurance fee or entered value must be greater
than 0.
Incorrect Property Inspection Waiver fee. Valid value: [$75].
PROPERTY INSPECTION WAIVER FEE
Missing Messenger fee or improper amount. Valid values: [$0 - $150].
39
Error Messages (cont.)
Validation Rule Name
Error Message
RECORDING FEE (TITLE)
STATE TAXES
Missing Recording (Title) fee or improper amount. Valid values: [$0 $150].
Missing Government Recording fee or entered value must be greater
than 0.
Missing State of Illinois Policy fee or improper amount. Expected
value: $3.00.
Missing State Tax Stamps fee or entered value must be greater than 0.
SUBORDINATION FEE
Missing Subordination fee or entered value must be greater than 0.
TAX CERT FEE
Missing Tax Cert fee or improper amount. Valid values: [$0 - $75].
TAX PAYMENT FEE
Missing Tax Payment fee or improper amount. Valid values: [$0 - $75].
TERMITE INSPECTION FEE
Termite inspection fees are not allowed for FHA loans.
TI SETUP FEE
Missing TI Set Up fee or improper amount. Valid values: [$0 - $50].
TITLE DOC PRINTING FEE
Missing Title Doc Printing fee or improper amount. Valid values: [$0 $100].
Missing Title Document Preparation fee or improper amount. Valid
values: [$0 - $200].
Missing Title Examination fee or improper amount. Valid values: [$0 $100].
RECORDING FEE CHECK
STATE OF ILLINOIS POLICY FEE
TITLE DOCUMENT PREPARATION FEE
TITLE EXAMINATION FEE
40
Error Messages (cont.)
Validation Rule Name
Error Message
TITLE UPDATES FEE
TRANSFER TAXES FEE PURCHASE LOANS
Missing Title Updates fee or improper amount. Valid values: [$0 $125].
Missing Transfer Taxes or value must be greater than 0.
TRANSFER TAXES REFI LOANS
Missing Transfer Taxes or value must be greater than 0.
UFMIP FEE
Missing UFMIP fee.
WIRE FEE
Missing Wire fee or improper amount. Valid values: [$0 - $75].
41
If you have any questions, concerns, or require additional
assistance, please contact your Account Executive or:
Marcus Butler
[email protected] (Receiving Team Lead)
Jennifer Gorecki
[email protected] (Receiving Team Lead)
Kendall Brown
[email protected] (Receiving Manager)
Team Email Box (Black, Purple, Blue, Green, Orange, Silver, Yellow, Red)
Team(color)[email protected]
Mariya Shudra
[email protected] (Corporate Sales Trainer)
333 Knightsbridge Parkway, Suite 210
Lincolnshire, IL 60069
Direct: (847) 239-7272
www.interbankwholesale.com
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