Under the new Real Estate Settlement Procedures Act, rule, a lender cannot perform income, asset and credit verifications until the prospective borrower has received a Good Faith Estimate, Patton Boggs LLP Partner Rich Andreano told MortgageDaily.com in a telephone interview.

But if a loan commitment is issued without a property and costs vary significantly on the poperty selected — the lender cannot revise the GFE.

In such a situation, the lender would be obligated to pay the difference in the taxes and fees.

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