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August 6
Part I
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer

August 12
A to Z of Reg E;
Andy Zavoina

August 13
Part II
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer

August 14
Advanced Business Accounts - Complicated Issues and Simple Solutions;
Deborah Crawford

August 19
HMDA - Coming Attractions;
Jack Holzknecht

August 20
Safe Deposit Regulatory Compliance & Legal Issues;
Dave McGuinn



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

Registered: 01/27/04
Posts: 1211
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 Offline
Diamond Poster

Registered: 01/27/04
Posts: 1211
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: 1393
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 Offline
Diamond Poster

Registered: 01/27/04
Posts: 1211
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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My views, not my employer's views.

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#1331465 - 01/26/10 05:13 PM Re: RESPA - 0% tolerance cure [Re: burgess]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13799
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: 1393
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 Offline
10K Club

Registered: 11/28/00
Posts: 13799
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).
_________________________
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 Offline
Diamond Poster

Registered: 01/27/04
Posts: 1211
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?
_________________________
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: 1393
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 Offline
10K Club

Registered: 11/28/00
Posts: 13799
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.
_________________________
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 Offline
Diamond Poster

Registered: 01/27/04
Posts: 1211
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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My views, not my employer's views.

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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 Offline
10K Club

Registered: 11/28/00
Posts: 13799
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.
_________________________
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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CRCM

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#1332256 - 01/27/10 03:14 PM Re: RESPA - 0% tolerance cure [Re: MarieR]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13799
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.
_________________________
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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CRCM

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