We had a doc prep error which has resulted in an inaccurate APR and Finance Charge. I need a Guru to help confirm I am handling this correctly.
Here are the details:
Loan is a 5-1 ARM residential mortgage loan, 360 term
Loan size is $850,000
Erroneous APR 3.725%
Corrected APR 3.7455%
Erroneous PPFC: 1,209.20
Correct PPFC: 2,410.42
Erroneous Amt Financed: $848,790.80
Correct Amt Financed: $847,589.58
Erroneous Finance Charge: 590,430.50
Correct Finance Charge: 591,631.72
The APR is within tolerance for an ARM. I am going to redisclose the corrected final TIL with a letter but do not see any reimbursemet due the borrower.
Your help is appreciated.
Regards
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Old School Banker