If a loan has already been closed but the lender did not give a required disclosure, should they still go ahead and mail it to the customer so they will have that information? Compliance has already noted it as an exception that it wasn't given at the correct time but isn't it best to go ahead and mail that to the customer?

Which disclosure. Usually, once the timing window has passed a late delivery does nothing to correct the compliance violation.

Not to correct the violation but just that the bank has ensured the customer has the information on their loan or bank. I'm referring to disclosures such as a privacy notice, title protection, mortgage servicing, GFE, NHLA, Right to receive copy of appraisal. IMO, most of these provide information that, if read by the customer, would be useful to know even after closing.

You can send them, but there is no regulatory cure in these cases, so it will not cure the regulatory violation.

Okay, I was just kind of curious what most banks do.

I think it might raise questions from the customer that you possibly don't want to answer. In reality, how many customers really read those documents... Not many that I've worked with over the last 18 years.

This is just my opinion... but Banks are talked about as being so awful in the media anymore, that sending info after the fact that should've been given upfront may spark unneccesary concern.

Now, on the other hand... it was found in an examination that one of our departments neglected to give the NHLA and we were required to send that out... AND go back to the last exam and confirm we had no other borrowers who were not provided this document... Just a heads up on that one... We created a cover letter and sent them out...

Guess I really wasn't any help... But atleast you have another perspective.

Was that the FDIC that you went through that with?

Just to complicate things a bit - the bank can be made to refund to the customer fees on the GFE.

I understand that the fees on the GFE that are matched against the HUD-1 are for GFE's issued within the 3 day timeframe. If the GFE was issued outside of the timeframe, the "amount on the GFE issued timely" would be $0.00, and fees and services in excess of tolerance would need to be refunded.

So say some, but not all............ The jury is still out on this one.

Where would one look to find the answer in this case? Would the closing costs be expected to be refunded by the regulators in this instance?

The discussion regarding this is at the end of this thread in the RESPA Forum:

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1480988#Post1480988

It still sounds conflicting. The best avenue would be do a free loan?

Best avenue for whom? You might want to ask your board and shareholders that question first.....