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October 29
Documenting an Applicant's Intent to be a Joint Applicant;
David Dickinson

November 4
Issues with Deceased Customers;
Mary Beth Guard and John Burnett

November 5
Vault Burglaries, Floods, Fires & Other Disasters;
Dave McGuinn

November 6
MLO v LO - Who Has to Do What?;
Jack Holzknecht and Mary Beth Guard

November 13
Domestic Violence & Workplace Violence: There Is A Link;
Shelly Collins and Dana Turner

November 18
Understanding USPAP and Regulatory Guidelines for Appraisal and Evaluation Compliance Reviews;
Eric Collinsworth



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#1330474 - 01/25/10 04:55 PM RESPA - 0% tolerance cure
burgess Online
Diamond Poster

Registered: 01/27/04
Posts: 1240
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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Lending Compliance
#1330492 - 01/25/10 05:08 PM Re: RESPA - 0% tolerance cure [Re: burgess]
burgess Online
Diamond Poster

Registered: 01/27/04
Posts: 1240
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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#1330565 - 01/25/10 06:26 PM Re: RESPA - 0% tolerance cure [Re: burgess]
jlroberts Offline
Diamond Poster

Registered: 09/07/09
Posts: 1417
Loc: Ohio
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.

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#1330575 - 01/25/10 06:41 PM Re: RESPA - 0% tolerance cure [Re: jlroberts]
ktac MITCH Offline
Diamond Poster

Registered: 05/04/05
Posts: 1807
Loc: Giant side of TX
Originally Posted By: jlroberts
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 09:48 AM Re: RESPA - 0% tolerance cure [Re: ktac MITCH]
burgess Online
Diamond Poster

Registered: 01/27/04
Posts: 1240
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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#1331465 - 01/26/10 05:13 PM Re: RESPA - 0% tolerance cure [Re: burgess]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 14089
Loc: Central City, NE
You don't hand the borrower a check because you can't charge a dime more than what you put on the GFE for a 0% tolerance item. Look at FAQ#9 (currently on page 34) of the "Right to Cure" section. The lender will need to pay the overage - not the borrower.
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David Dickinson
http://www.bankerscompliance.com

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#1331495 - 01/26/10 05:40 PM Re: RESPA - 0% tolerance cure [Re: David Dickinson]
jlroberts Offline
Diamond Poster

Registered: 09/07/09
Posts: 1417
Loc: Ohio
LOL currently on page 34. I didn't paid attention that the question was about a no tolerance item. Yea, better not screw that one up.

David, what if we did screw up and the borrower paid the fees? Won't we have to give those funds that they should not have paid back to the borrower?

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#1331499 - 01/26/10 05:43 PM Re: RESPA - 0% tolerance cure [Re: jlroberts]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 14089
Loc: Central City, NE
Yes. That would be the way to cure your lack of properly curing. (just trying to have a little fun with a very sad topic).
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David Dickinson
http://www.bankerscompliance.com

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#1331526 - 01/26/10 06:04 PM Re: RESPA - 0% tolerance cure [Re: David Dickinson]
burgess Online
Diamond Poster

Registered: 01/27/04
Posts: 1240
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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My views, not my employer's views.

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#1331533 - 01/26/10 06:12 PM Re: RESPA - 0% tolerance cure [Re: burgess]
jlroberts Offline
Diamond Poster

Registered: 09/07/09
Posts: 1417
Loc: Ohio
I'm not Dave but.... IMO, the HUD reflects the GFE figure, you just eat the difference. We don't use Block 2 so we would have just lost the bank a buck in income.

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#1331558 - 01/26/10 06:51 PM Re: RESPA - 0% tolerance cure [Re: jlroberts]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 14089
Loc: Central City, NE
If something costs more than what you thought, you list the extra ($1 in this case) as POC (Lender) on a separate line in the same series. You can't charge them any more than what you said on the GFE for 0% tolerance items.
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David Dickinson
http://www.bankerscompliance.com

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#1331756 - 01/27/10 10:08 AM Re: RESPA - 0% tolerance cure [Re: David Dickinson]
burgess Online
Diamond Poster

Registered: 01/27/04
Posts: 1240
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 11:07 AM Re: RESPA - 0% tolerance cure [Re: burgess]
MarieR Offline
Platinum Poster

Registered: 11/23/05
Posts: 568
Loc: Kentucky
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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#1331893 - 01/27/10 11:14 AM Re: RESPA - 0% tolerance cure [Re: MarieR]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 14089
Loc: Central City, NE
If you over disclosed a credit (block 2), then you must still give the credit you promised (no matter what the actual cost). You don't put it in the 200s or write them a check. Refer to FAQ #1 in the GFE Block 2 section.
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David Dickinson
http://www.bankerscompliance.com

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#1332082 - 01/27/10 12:59 PM Re: RESPA - 0% tolerance cure [Re: David Dickinson]
MarieR Offline
Platinum Poster

Registered: 11/23/05
Posts: 568
Loc: Kentucky
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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#1332256 - 01/27/10 03:14 PM Re: RESPA - 0% tolerance cure [Re: MarieR]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 14089
Loc: Central City, NE
If you over disclosed Block 1, you put the actual charge on line 801 of the Settlement Statement and in the tolerance table. These fees can always be less. You don't need to cure as the actual charge is less than estimated.
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David Dickinson
http://www.bankerscompliance.com

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#1332348 - 01/27/10 03:55 PM Re: RESPA - 0% tolerance cure [Re: David Dickinson]
MarieR Offline
Platinum Poster

Registered: 11/23/05
Posts: 568
Loc: Kentucky
Thanks David - I was thinking that made sense so I just figured I was wrong.
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