What if you have an instance in which the GFE did not get delivered within the 3 business days. Is there a cure for this error?

No, there is no cure. And the new word is that HUD is considering a late GFE to mean a free loan as far as settlement costs in their respective tolerance categories.

I know that this has ben talked and talked and talked about. But is there a directive from HUD regarding this?
Is it going in a Q & A?

Is it in writing from HUD or an examiner, is the question I keep hearing.

Sounds like that would be a good thing to mention in training to the lenders to keep this from happening!!!!

Thanks for the info!!!!

You won't get anything in writing from an examiner on a rule under HUD authority.

They only thing we have so far is written documentation from Andrew Fay who, I believe, helped author the new RESPA rules.

I do know that I was sent a reply from HUD saying otherwise, and he immediately retracted and sent a correction to me by the next morning...I, for one, will be adhereing to the late = "free".

when I say "free", I'm referring to the origination sections and no more than 10% on other tolerance items.

As much as I fear the devil I don't know, I am hopeful about the transfer of regulatory authority for RESPA to the CFPB. I don't see any legal authority for "late=free."

Here's the response from Andrew Fay that joker got, QCL.

It's in writing.
It's from HUD.
I've got a copy in my binder so I can say this is the guideline I used.
My examiners know all about BOL and I'm thinking since I'm FRB, there's not going to be much interpreting done on something from HUD.

I'm with John and again, as I have from the beginning of this long discussion, will reiterate: "I don't see any legal authority for "late=free."

We need one of those big banks with lots of lawyers to challenge this. This is when those guys come in handy.

I'll be listening to the FDIC Kansas City Region Regulatory Teleconference Compliance Update at which Andrew Fay is a speaker.....guess I'll see if there is any new news....or if he stutters when he utters it again.

And I will reiterate that while there may be no legal authority, this is one time I actually think it makes sense. Why impose a time limit if there isn't a hammer? Not a slap on the wrist violation a year later IF an examiner finds it. That doesn't benefit the borrower. Not being able to charge fees benefits the borrower. And RESPA is all about benefiting the borrower.

That's my story and I'm stickin' to it!

Of course you are entitled to your opinion - but as long as the consumer is provided the GFE - the loan does not proceed until an "intent to proceed" is received after reviewing what charges will be imposed on transaction. It would be like saying if the early TIL is not delivered on time, the APR should revert to the interest rate or that they are allowed to rescind the transaction. The law or regulation does not support Andrew's position and I doubt the courts will either. I would not subject my bank to such an arcane process without offical written guidance or regulation outside of one man's opinion in what would be considered an e-mail.

You know I don't think it's too unlikely that examiners could "hear" about this and begin enforcing it even if there is no legal authority. Didn't the FDIC once have their own interpretation of disclosing RE taxes on the GFE/HUD for home equity loans that they enforced?