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#1315654 - 12/30/09 08:05 PM
ARTA--HELP
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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Does anyone use ARTA? I am trying to figure out how to do a cure tolerance when it is above 10%. They way I was shown is not working. I have emailed suppport 2 days ago and no answer. I was wondering if anyone else has figured it out.
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#1315664 - 12/30/09 08:12 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Aug 2002
Posts: 47,673
Bloomington, IN
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We just got our update and got it installed yesterday. I have not had a lot of time to work with it yet so I don't have an answer for you until I get to play with it some this afternoon and tomorrow.
I did call the support line yesterday concerning construction loans and the monthly pay option and left a voice mail. They called me back within 2 hours. You may want to try that instead of an email.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1315720 - 12/30/09 08:46 PM
Re: ARTA--HELP
Dan Persfull
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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Thanks for the reply. I finally received an email today. They told me to put the cure tolerance as a credit in 204-209 and that it should flow over to the comparison chart...well its not doing it for me. It shows up in the 200 series but the comparison chart is not updated and still shows out of tolerance.
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#1315738 - 12/30/09 08:58 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Aug 2002
Posts: 47,673
Bloomington, IN
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I'm not sure if the comparison chart would or should update (haven't gotten that far yet). The purpose of the chart is to show if the figures were out of tolerance and if they are then you show the cure for the specific item or an overall credit in the 200 series. I would think, as an auditor/examiner, I would want the chart to show how far the transaction was out of tolerance and then compare your cure line posting to insure you credited the appropriate amount.
IOWs if the chart showed you were 15% out of tolerance then I want to make sure you credited the borrower at least 5% to bring it within the 10% tolerance.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
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#1315749 - 12/30/09 09:04 PM
Re: ARTA--HELP
Dan Persfull
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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That is what I thought but in all the trainings I have attended, they show the tolerance adjusted on the comparison chart as well and shows 10%.
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#1315763 - 12/30/09 09:14 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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That is how page 26 of the HUD's plain english presentation shows it... page three 41% out of tolerance remains that way, and the cure on page one for the portion in excess of 10%.
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#1315776 - 12/30/09 09:24 PM
Re: ARTA--HELP
#Just Jay
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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This questions comes from HUDs FAQs...this makes it sound like the chart should change.
Q: May a credit for a tolerance cure be listed on page 1 of the HUD-1? A: The cure for a potential tolerance violation may be listed as a credit to the borrower on page 1 of the HUD-1 with a description of the service(s) the credit is applied to. If the tolerance cure is applied to the overall tolerance category ―Charges That in Total Cannot Increase More Than 10%‖, the tolerance cure credit may be listed as a ―lump sum‖ amount on a blank line in Lines 204 thru 209 with a description of the tolerance category cure. The comparison chart on page 3 of the HUD-1 should reflect the credit given for that service to cure the potential tolerance violation in the appropriate tolerance category.
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#1315800 - 12/30/09 09:36 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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yeah, I would read it that way as well, but the comparison chart is not set up to do that. I am sticking with the Plain English presenation as my supporting evidence of doing it the way previously discussed... their pics will match mine
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I don't repeat gossip, so listen closely...
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#1315809 - 12/30/09 09:44 PM
Re: ARTA--HELP
#Just Jay
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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So all we would need to do is on page 1 (204-209) give the credit to bring down to 10% tolerance and thats it?
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#1315857 - 12/30/09 10:15 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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That is what we are doing.
Have you checked out the Plain English presentation yet?
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I don't repeat gossip, so listen closely...
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#1315866 - 12/30/09 10:18 PM
Re: ARTA--HELP
#Just Jay
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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Yes,I just looked at it. I take it the same way. All other presentations I've seen has adjusted the comparison chart as well. I'm going to go with plain english!
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#1315887 - 12/30/09 10:37 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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I am very curious now... how have they shown the chart being adjust?? A line item, or tweaking each charge, or ???
In order to preserve the spirtit of the rule, it just seems wrong to me to tweak the chart.
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I don't repeat gossip, so listen closely...
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#1317078 - 01/04/10 07:42 PM
Re: ARTA--HELP
#Just Jay
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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It was a lump sum on line 208 and on the comparison chart. It must have manually been entered. From what I have received from ARTA support, is that to do the adjustment on the comparison chart--it must be done manually.
So, to correct a tolerance, we just need to credit the borrower in the 200 series?
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#1317087 - 01/04/10 07:48 PM
Re: ARTA--HELP
ahkcompliance
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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That is all we are doing, does not seem right to to me adjust the HUD... how would you prove the need for a correction if you tweak the chart?
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I don't repeat gossip, so listen closely...
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#1317105 - 01/04/10 07:56 PM
Re: ARTA--HELP
#Just Jay
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Platinum Poster
Joined: Dec 2005
Posts: 553
USA
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I spoke with Arta two weeks ago about the fact that they should give you both methods to cure. IMO a cure on line 204 only applies when you give a cashiers check to the borrower. I think if you pay for a settlement service on the applicant's behalf it should be a line item adjustement. They told me they were going to fix this. I have not followed up.
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#1317113 - 01/04/10 08:01 PM
Re: ARTA--HELP
CompDat
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Diamond Poster
Joined: Sep 2008
Posts: 2,481
Midwest
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I think you can do a line item cure in ARTA. Don't you just list the actual amount incurred to the borrower on the HUD and then in the blank lines put lender POC.
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#1317182 - 01/04/10 08:41 PM
Re: ARTA--HELP
pjs
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Junior Member
Joined: Jul 2009
Posts: 34
ARKANSAS
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We use ARTA and we no longer have access to the old HUD for commercial transactions. What are we to do in this case? Didn't I read correctly that REG X exempts business purpose loans?
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#1317237 - 01/04/10 09:14 PM
Re: ARTA--HELP
pjs
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10K Club
Joined: Nov 2000
Posts: 18,765
Central City, NE
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You can't use HUD settlement statements on a business loan. We made up a settlement sheet for the borrower. Sure you can. RESPA doesn't apply to business loans, but you can use the Settlement Statement if you want.
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#1317239 - 01/04/10 09:16 PM
Re: ARTA--HELP
David Dickinson
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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Yeah, we use it for HELOC's as well to show their breakdown of costs.
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#1317263 - 01/04/10 09:30 PM
Re: ARTA--HELP
David Dickinson
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10K Club
Joined: Aug 2004
Posts: 10,321
oHiO
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You can't use HUD settlement statements on a business loan. We made up a settlement sheet for the borrower. Sure you can. RESPA doesn't apply to business loans, but you can use the Settlement Statement if you want. Thanks- I thought it would be odd with the comparison chart.
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#1317268 - 01/04/10 09:31 PM
Re: ARTA--HELP
pjs
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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We will throw page three away!
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I don't repeat gossip, so listen closely...
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#1317332 - 01/04/10 10:00 PM
Re: ARTA--HELP
pjs
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Diamond Poster
Joined: May 2005
Posts: 1,813
Giant side of TX
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Wow, seriously why didn't I think of that!! Duh me!! Because RESPA / CC / DD / Z / Et Al in 2009 ; fried you brain (& so many others of us)
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