Q: If a borrower applies for a first and second mortgage before January 1, 2010 and the loan originator issues a GFE using the new form for the first mortgage, does the loan originator have to issue the second mortgage GFE on the new GFE form also?
A: No, the loan originator does not have to issue the GFE for the second mortgage on the new GFE form prior to January 1, 2010 even if the loan originator issues the GFE for the first mortgage on the new GFE form. To avoid consumer confusion, the loan originator may choose to issue new GFEs for both the first and second mortgage, or old GFEs for both the first and second mortgages. If the loan originator issues the old GFE, the old HUD-1 must be used. If the loan originator issues the new GFE, the new HUD-1 must be used.
This can be found in General – FAQ #7 of HUD’s FAQs. HUD’s FAQs can be found at http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm