I have a question about a Closing Disclosure and the Disbursement Date on a no rescission loan with payoffs requiring funds from borrower received on the next day. Would we disclose the Disbursement Date on the CD as the same day as the closing date or the date we receive the borrower's funds and the actual funds are disbursed?
I have two questions regarding TRID.
1. A fee that should have been disclosed on the Loan Estimate section “Services You Cannot Shop For” (FHA Upfront MIP) was inadvertently disclosed in the “Other Costs” section. It was disclosed in the correct section on the Closing Disclosure. What is the violation and cure for this error?
2. A fee of $555 was disclosed for the appraisal on the Loan Estimate for an FHA loan. This estimate was in good faith and considered the likelihood that repairs be requested as a result of the appraisal. On the Closing Disclosure the fees were listed as Appraisal - $400 and Inspection Fee/Additional Appraisal Fee - $100. Is this subject to a cure?
Would there ever be a reason to reflect a rate lock extension fee on an LE and/or a CD when the lock has not expired and will not expire until after
closing? Closing has not been delayed in this scenario.
This pertains to a loan modification on s consumer lot purchase loan. No new money is lent. We are modifying the maturity date and terms.
(1) Can the interest rate be modified?
(2) Does TRID apply?
If a fee that is normally charged on a TRID transaction is inadvertently omitted from the LE but added to the CLoD, would that be subject to a cure of the entire amount? Example, the fees for lender's title insurance, the settlement/closing fee, recording fees were completely omitted from the LE that was delivered to the applicant. Even though these fees are normally subject to a 10% tolerance, shouldn't they be totally cured since they were not disclosed on the LE?
Do we state the split of Real Estate Broker Commission on the Closing Disclosure?
Would an escrow waiver fee be disclosed in the Loan Origination Section and in the Escrow Waiver Fee section?
I am auditing a bank and verifying consumer 1-4 family loans are not HPMLs. I am using the Closing Disclosure date and APR to perform my testing. Am I using the correct date and APR?
If a fee is POCL, the borrower was never intended to pay for the fee, should the fee be disclosed on the Loan Estimate?
If we disclose these and the fees change (appraisal fee or credit report fee) and we adjust the POCL then it appears we are violating the specific lender credit by changing it, usually lowering the POCL fee. Should this only be disclosed on the CLoD or not disclosed at all since the borrower is not required to pay the fee?
What has confused me are these two articles/posts which make it appear if it is a POCL or lender paid fee then it does not have to be disclosed on the LE.
In my search for guidance on e-Sign compliance for delivery of appraisals (Reg B) and Closing Disclosures (Reg Z) there seems to be a difference in what is recommended for Reg B & Reg Z. All the guidance on delivery of the closing disclosure states that a read or delivery receipt is not a recommended method of documenting proof of the date delivery occurred. However, guidance on Reg B delivery date of the appraisal tends to lean the other way and regarding a read/delivery receipt. In fact the commentary
1002.14(a)(4)(I) even states ... “Delivery occurs three business days after mailing or delivering copies... or when evidence indicates actual receipt by the applicant, whichever is earlier". With the commentary in mind is it necessary for us to get a confirmation e-mail to document the actual date of delivery of the appraisal or can we simply apply the guidance from the commentary and rest on the delivery occurred three business days after xmailing whether snail or electronic mail?