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#1331734 - 01/27/10 02:57 PM Understated APR & Finance Charge
OldSchoolBanker Offline
Platinum Poster
Joined: May 2005
Posts: 662
FL
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

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Lending Compliance
#1332097 - 01/27/10 06:09 PM Re: Understated APR & Finance Charge OldSchoolBanker
OldSchoolBanker Offline
Platinum Poster
Joined: May 2005
Posts: 662
FL
I should add a couple of added clarifiers:
1) The loan closed and funded in December 2009.
2) The original TIL disclosed an APR of 3.653%
3) The understated PPFC was the daily interest per diem, which was paid at closing but not correctly coded as a PPFC.

There is no material monetary impact. Am I okay just sending a revised final TIL?

Thanks

I will
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Old School Banker

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