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#512497 - 03/10/06 07:31 PM TIL Tolerance
In Need of Help 101 Offline
Platinum Poster
Joined: Jan 2006
Posts: 574
A loan to purchase a MH with real property was set to close with the HUD #1101 to be only $100.00. When the LO goes to closing the attorney increases the settlement fee line to be $124.99. When I rerun the final TIL to reflect the $124.99 the APR increases .008% and of course the finance charges increases. Must we re-disclose because we understated or are we okay being within the $100 tolerance? I am confused...

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Lending Compliance
#512498 - 03/10/06 07:53 PM Re: TIL Tolerance
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
For regular transactions you have a 1/8 per-cent (.125) tolerance.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#512499 - 03/11/06 01:11 PM Re: TIL Tolerance
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Redisclosure is a low cost insurance policy and should be a standard practice. When you consider all your costs, it may be cheaper than the conditional redisclosure practice you seem to be following now. Automatically grinding out a new TIL and sending/giving it to the borrower has to be cheaper than any practice involving a quality contol decision.
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...gone fishing.

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