When a borrower uses a mortgage broker to originate his or her loan, who is initially responsible for providing the Good Faith Estimate?

When a borrower utilizes the services of a mortgage broker to originate a loan, the mortgage broker has the initial responsibility for providing the Good Faith Estimate (GFE). The GFE is a critical document that outlines the estimated closing costs and details associated with the mortgage loan, allowing the borrower to understand the financial implications of their mortgage.

Mortgage brokers act as intermediaries between borrowers and lenders and are required by federal regulations to ensure that borrowers receive this essential disclosure within three business days of the loan application. This responsibility is central to ensuring transparency and allowing borrowers to make informed decisions about their mortgage options.

While lenders eventually play a significant role in the overall process, particularly in finalizing the loan terms and conditions, it is the mortgage broker who initially prepares and provides the Good Faith Estimate in this context. The other entities listed—such as the title company and settlement agent—are not responsible for this initial estimate, as their roles typically involve handling related aspects of the closing process, rather than the loan origination and estimation of costs.