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#1330474 - 01/25/10 09:55 PM
RESPA - 0% tolerance cure
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Diamond Poster
Joined: Jan 2004
Posts: 1,621
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We are over on a 0% tolerance cure. We can issue the borrower a check. Where do we list the check on teh HUD-1, in the 200s as a credit or somewhere else?
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#1330492 - 01/25/10 10:08 PM
Re: RESPA - 0% tolerance cure
Burgess
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Diamond Poster
Joined: Jan 2004
Posts: 1,621
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ok, specifically my question is do we even need to list the refund check on the HUD, why can't we just show the toerance violation in the 0% catagory and hand the borrower a check?
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#1330575 - 01/25/10 11:41 PM
Re: RESPA - 0% tolerance cure
jlroberts
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Diamond Poster
Joined: May 2005
Posts: 1,813
Giant side of TX
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According to the FAQ I think our options are: 1)Cure at closing with the credit in the 200 series or 2)Cure within 30 days with a revised HUD, the credit in the 200 series and hand the borrower a check. But I don't think you can just hand them a check without the revised HUD. JL is correct - You are changing what the borrower paid (either at the closing or later) and therefore the HUD must correctly indicate what the borrower did pay.
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#1330763 - 01/26/10 02:48 PM
Re: RESPA - 0% tolerance cure
ktac MITCH
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Diamond Poster
Joined: Jan 2004
Posts: 1,621
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ok, if we revise the HUD though, on the zero % tolerance can we use the 200 series to show the refund check?
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#1331526 - 01/26/10 11:04 PM
Re: RESPA - 0% tolerance cure
David Dickinson
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Diamond Poster
Joined: Jan 2004
Posts: 1,621
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David - so if the no tolerance item costs $10 and we said $11, rather than hand the borrower a check for $1, instead we show the out of tolerance on the HUD and we pay teh $1 along with the $10 we collected from the borrower.
The Hud will show us in tolerance $10 GFE compares to $10 HUD. we will then have a imaged copy of our $1 check to show examiners when they unravel this mess.
right?
close?
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#1331756 - 01/27/10 03:08 PM
Re: RESPA - 0% tolerance cure
David Dickinson
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Diamond Poster
Joined: Jan 2004
Posts: 1,621
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ok thanks i am set.
we have a 0% tolerance violation by disclosing $10 on the GFE for what turns out to be a $11 dollar item. We catch this right before closing. We run the HUD with the page 3 recap showing $10 0% tolerance item from the GFE compared to the HUD $10 charge. On the appropriate HUD line number we show a $1 POC from the lender
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#1331878 - 01/27/10 04:07 PM
Re: RESPA - 0% tolerance cure
Burgess
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Joined: Nov 2005
Posts: 614
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What if you disclose $11 but the actual fee was $10? In this case that you overdisclosed the fee you would have to give the customer credit in the 200 series or write them a check, right? I just want to make sure I get it for the 0% tolerance cure.
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#1332082 - 01/27/10 05:59 PM
Re: RESPA - 0% tolerance cure
David Dickinson
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Joined: Nov 2005
Posts: 614
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What if we overdisclosed in block 1 due to the attorney prepared bank documents for some reason? If we have no credit in block 2 how would we cure that?
I haven't seen this yet, it is just what came to my mind when reading this thread.
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#1332348 - 01/27/10 08:55 PM
Re: RESPA - 0% tolerance cure
David Dickinson
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Platinum Poster
Joined: Nov 2005
Posts: 614
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Thanks David - I was thinking that made sense so I just figured I was wrong.
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