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December 3, 2014
Overdrafts: Latest Regulatory Feedback, Guidance & Best Practices Webinar
David Dickinson and Jerod Moyer

December 4, 2014
Freebies, Bonuses and Contests
John Burnett and Andy Zavoina

December 9, 2014
Bankruptcy: Creditor Do's and Don'ts
Sam Ott

December 10, 2014
Branch Audits: What Is Going On Out There?
Patricia Cashman

December 11, 2014
Setting up New Accounts for Trusts
Mary Beth Guard

December 17, 2014
Integrated Disclosures - An Implementation Strategy
Mary Beth Guard and Jack Holzknecht

December 18, 2014
Loan Review Best Practices for a Community Bank
Bob Fritzlan

December 19, 2014
PREPAID PRODUCTS - Understanding the CFPB Proposal
John Burnett



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#1691309 - 04/20/12 04:56 PM Curing Tolerance
La. Lady Offline
Diamond Poster

Registered: 05/08/01
Posts: 1873
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
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RESPA
#1691316 - 04/20/12 05:03 PM Re: Curing Tolerance [Re: La. Lady]
Need Coffee Offline
Member

Registered: 03/08/12
Posts: 59
Loc: Down South
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.
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#1691318 - 04/20/12 05:05 PM Re: Curing Tolerance [Re: La. Lady]
Need Coffee Offline
Member

Registered: 03/08/12
Posts: 59
Loc: Down South
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.
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#1691319 - 04/20/12 05:07 PM Re: Curing Tolerance [Re: Need Coffee]
La. Lady Offline
Diamond Poster

Registered: 05/08/01
Posts: 1873
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


Edited by Queenof--Concern (04/20/12 05:08 PM)
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#1691325 - 04/20/12 05:21 PM Re: Curing Tolerance [Re: La. Lady]
Need Coffee Offline
Member

Registered: 03/08/12
Posts: 59
Loc: Down South
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.
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#1691345 - 04/20/12 10:49 PM Re: Curing Tolerance [Re: Need Coffee]
La. Lady Offline
Diamond Poster

Registered: 05/08/01
Posts: 1873
Thanks....i think we could clear the tolerance at closing....
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