Good Faith Estimate (GFE)

The good faith estimate (GFE) is a form that details the breakdown of settlement fees that must be paid at closing.

A lender must provide the GFE to a borrower within 3 business days of mortgage application.

It contains information like:

  • Loan origination fees
  • Processing fees
  • Underwriting fees
  • Insurance premiums
  • Loan amount
  • Interest rate
  • Monthly payment amount
  • Prepayment penalty
  • etc

Because of the limitations of GFE that undermines it’s purpose, it was phased out in October 2015 with the loan estimate and closing disclosure form.

The use of GFE is however retained for reverse mortgages.