HUD's FAQs - If a Loan Contains Mortgage Insurance That is Paid by the Lender (LPMI) and Will Not Be Charged Separately to the Borrower, Should the Originator Disclose it in the Summary of Your Loan Section or as a Charge in any Block on the GFE?

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Q: If a loan contains mortgage insurance that is paid by the lender (LPMI) and will not be charged separately to the borrower, should the loan originator disclose it in the "Summary of your loan" section of the GFE or as a charge in any Block on the GFE?

A: No, because the LPMI has already been captured in the interest rate and is not charged separately to the borrower, it is not disclosed on the GFE.

This can be found in GFE-General – FAQ #37 of HUD’s FAQs.  HUD’s FAQs can be found at http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm.

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