Any suggestions on how to fix a tolerance issue in the zero tolerance category after settlement? We just discovered our origination charges were one cent over the amount on our GFE. It seems ridiculous to have to fix this but I can't see how we can ignore it (if anyone disagrees I'd love to hear how you think we can - ignore it that is) - anyway, I can't figure out how to actually do this since all of the guidance seems to be specific to cures in the 10% category.

Could we simply cut the customer a check for .01 and have the title company prepare a revised settlement statement showing the lower gfe amount on page 2 and 3 and lowering the totals by a penny without actually detailing a tolerance correction?

I should probably also mention we're well past 30 days since settlement - but I still think we need to make a good faith effort to make the correction.

We had a similar problem,past the 30 days, so we cut a check to our borrower (it was more than .01 though) and did not issue a new HUD-1. We explained in the letter sent to the borrower what happened. We found this before the examiners arrived and they were okay with the way we corrected the error.

Thanks Kahola. Sounds reasonable to me. I've been struggling with the redo of the HUD, and since we're out of the cure period anyway, I think a reimbursement to the client would probably be sufficient.

We've been revising the HUD regardless of the time frame. We've also been double reimbursing the 800 section since each line carries a zero tolerance. (although it's not fair, nor right...but until HUD says differently, I'm not sure what else to do!)

Glad to know I'm not the only one in this situation and I appreciate the added insight. I hadn't thought about the double reimbursement.

I'm having a hard time wrapping my head around that - I see what you're saying but holy cow!

Correction ----- we did revise the HUD-1.

Can you explain what double reimbursing the 800 series fees means? Was there some HUD direction on this?

I think what joker is saying is that each individual line in the 800 series carries it's own -0- tolerance, and since I was over a penny in both line 801 and 803, even though it's the same penny, then technically I need to bring each separate line within -0- so I'd have to reimburse 2 cents, not 1 cent.

I've seen this referenced in another thread as well but I'm having a hard time on this one. Most of the other stuff I can get to make sense - mostly - but I can't imagine this would be the intent. I think I'm going to e-mail HUD - just to see what they have to say.

SaaL is correct. I also don't believe they intended to do that, but they've made no effort to date to change what they've said.