Which of the following charges shown on the GFE must match the HUD-1?

The GFE, or Good Faith Estimate, and the HUD-1 Settlement Statement are critical documents in the mortgage process that serve different purposes; however, there are specific charges that are expected to match between the two. The correct answer relates to the loan origination charge.

Loan origination charges are the fees associated with processing a loan application and underwriting the loan. These charges include, but are not limited to, the lender’s fee for originating the loan and other associated processing costs. Because these charges are standardized and clearly defined, they must remain consistent between the GFE and the HUD-1. This consistency helps ensure transparency and allows borrowers to compare the estimated costs against the actual costs at closing, facilitating a clearer understanding of the total financial obligations involved.

In cases where a "changed circumstance" affects the terms of the loan or changes the fees, adjustments may occur; however, the original loan origination charge should still be consistent on both documents unless otherwise adjusted under specific circumstances. Therefore, ensuring that this charge aligns on both the GFE and HUD-1 is essential for maintaining clarity in the process of obtaining a mortgage.