I'm not sure that I will be able to explain this scenario..Apparently, our loan officer has a closing on Monday at 10:00. She received the HUD back from the attorney and it included additional charges for 3 properties. The loan officer only disclosed on the GFE one property. She told me that she received word a couple of weeks ago from the attorney that there was a problem between the GFE and the HUD...but she "never thought about redisclosing".....

She said that the customer brought in $1400 in cash as a down payment a week ago, which she turned into Money Orders. She now wants to know how she was going to tell the customer that they needed to bring in another $1300 by Monday.....She said that coming up with this money will be hard for them...they don't have an abundance of funds.....I suppose the additional money request is because of the additional properties..

She is also questioning...since we do not require Lenders Title Insurance...does she have to include that in her tolerance......

She knows that there will be a cure..She states that she is 29% over tolerance.....I know that we don't have to stop closing because of the tolerance and that we have 30 days to cure...

I know that I am probably not making sense here....If anyone knows what I MIGHT be trying to say.....Please feel free to answer.........

I hate it when someone comes up with this stuff on Friday 10 minutes before going home.....


I

What do you mean by additional charges for 3 properties? What type of charges? Appraisals, inspections, escrows, current tax payments or pro-rations?

I can assume you are not referring to title insurance as you say you do not require it.

Sorry for the additional questions I am just trying to understand the fact pattern.

It almost sounds like lender's title insurance is being collected even though it is not required since you are asking if it must be included in the tolerance determination. Or was it listed on the GFE? If so, why as it was not required?

Again, just trying to understand. I can't imagine a borrower willing to pay LTI if it is not a requirement.

Thanks for responding so quickly....

Don't worry about additional questions.....The additional money was for an additional abstract and 2 chains of title.

Does that make sense

That is a valid change in circumstance but you must act timely in re-issuing the GFE. The problem is she found out a couple weeks ago and did not act.

The abstracts, I presume, are required by the lender and are 10% tolerance.

My opinion is techinically you must run with the old GFE and cure the tolerance violation accordingly.

Please, someone correct me if I am wrong.

Thanks....i think we could clear the tolerance at closing....