The following (first of) two questions address worksheets. For purposes of these questions a worksheet is a document issued by a loan originator that may include generic information regarding interest rates and loan fees, or a document that may provide additional information to the consumer regarding the cost of the overall transaction outside of loan fees that are disclosed on the GFE.
Q: Can a worksheet be provided to a customer for a rate quote if the consumer does not want to provide the information necessary to generate a GFE?
A: Yes, however loan originators should ensure the following: (1) to eliminate consumer confusion, a worksheet should not look like a GFE and should not lead the customer to believe that it is a GFE; (2) a loan originator should NEVER use a worksheet in lieu of a GFE; and (3) as stated in previous guidance, under RESPA regulations, when a loan originator receives an application or information sufficient to complete an application, the loan originator must issue a GFE.
This can be found in GFE-General – FAQ #35 of HUD’s FAQs. HUD’s FAQs can be found at http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm