During the QC of loan files that we outsource for origination under a private label arrangement, we have found in some situations that the initial GFE & TIL are being mailed out in excess of 3 days from the date the application is taken. In responding to the QC Findings, the private label originator has stated that the LOS comments screens indicate that the documents were sent on a specific date, but cannot provide a document to support. Does anyone think a regulator would accept comments screens from a LOS as proof of delivery?

What is an LOS and what makes you believe the disclosures were after the 3 business day period? I'd want to compare that to any computerized tracking screens.

Sorry, an LOS is a Loan Origination System and the reason it is believed to have been mailed late is that a copy of a GFE & TIL attached to a cover letter dated in excess of 3 days from the application date were found in the loan file. The originator insists that another set of the GFE & TIL was mailed out within the 3 days based on the comments made in the origination system, but has no documents to support.

We've had this come up before in exams. We have a checklist that each loan officer is to initial next to each disclosure given and if they have to mail the disclosure, they place a date next to their initial. For what it's worth, our past couple examiners have stated that as long as there isn't evidence of a pattern or practice of providing disclosures later than three days, then they accept an LO's initials as proof that disclosures were sent in time.

We don't find very many disclosures signed and dated by the applicant more than three days from application.

However, it may be hard to prove that these were sent within three days if there is a letter dated more than three days after application.

If the docs are dated by the system, I'd ask why the disclosures and the checklist are not in sync. If the checklist is manually entered and the disclosures are based on system dates, and the system dates are set correctly, I'd say they are fudging on the logs. If both can be manually entered, I'd criticize the practice. I am not accustomed to seeing anyone forward date disclosures and would ask why.

But then again, I'm an ex-lender. I've seen this before and never so they could test our auditing ability.