Good Faith Estimate (GFE)

Definition: A standardized disclosure of estimated loan terms and settlement costs that remains used for reverse-mortgage applications. It was formerly used more broadly for residential mortgage loans.

Example

A reverse-mortgage applicant receives a GFE to review estimated charges and compare available options.

Keep the distinction clear

Most covered closed-end forward mortgages now use the Loan Estimate instead. Neither an estimate nor a GFE is the same as final loan approval.

Related terms

Reverse Mortgage · Underwriting · Loan Origination Fee

Keep studying

Loan Estimate, Closing Disclosure, and Loan Approval: Different Steps

References: CFPB: Good Faith Estimate

Pronunciation (US): GOOD FAYTH ES-tuh-mut; jee-ef-EE (capitals show stress)