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#1546448 - 05/05/11 02:55 PM Am I right? 2nd Opinion...
MB Guy Offline
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I found a GFE where they disclosed a charge for Owner's Title Insurance for $50, but at closing the actual Owner's Title Insurance cost was $150, of which the seller paid $100, which was disclosed on the HUD in the seller's column.

The HUD's GFE/HUD comparison chart had $50 for the buyer and $100 for the seller.

My understanding is that we should have disclosed the entire $150 for the Owner's Title Insurance on the GFE and since we didn't, even though the seller paid for it, we would need to reimburse the customer for the $100 since we didn't disclose it properly at the beginning. Is that correct?
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#1546490 - 05/05/11 03:24 PM Re: Am I right? 2nd Opinion... MB Guy
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
Quote:
The HUD's GFE/HUD comparison chart had $50 for the buyer and $100 for the seller.


There is no buyer/seller column on the comparison chart, only a GFE and HUD column. The GFE column should have $50 and the HUD column should have $150 and the borrower gets the cure, if out of tolerance, regardless who paid the fee.
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#1546500 - 05/05/11 03:31 PM Re: Am I right? 2nd Opinion... Dan Persfull
MB Guy Offline
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Oops, sorry Dan, I meant on the HUD body for the $100 for the seller, not the comparison chart.
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#1546509 - 05/05/11 03:37 PM Re: Am I right? 2nd Opinion... MB Guy
#Just Jay Offline
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IMO, it should show $150 in the buyer's column on page two of the HUD, with a seller credit in the 200s on the front for $100.

Also, who selected the title company: the bank, the borrower, or the seller(grrr..)? This may influence where is lands on page three on the comparison chart: in the 10% column if you choose it or the borrower choose your preferred provider, or the unlimited tolerance chart if they or the seller (grrr...) selected another provider. Either way, you would still list the $150 actual cost to the $50 estimate.
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#1546526 - 05/05/11 03:47 PM Re: Am I right? 2nd Opinion... #Just Jay
MB Guy Offline
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Jay, the title company was selected by the bank.
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#1546538 - 05/05/11 03:56 PM Re: Am I right? 2nd Opinion... MB Guy
#Just Jay Offline
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Then it will go in the 10% section of the comparison chart. Hopefully, you have not gone over on your other items, and you have a little extra in that section and will not have to refund the entire $100 to your borrower!!

If you are really lucky and have the full $100 in wiggle room (well, I dunno how lucky that would be as that may be an indication your are over estimating to pad for event such as this, but that is another issue), I would still provide a corrected HUD regardless if a cure is needed or not.
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#1546757 - 05/05/11 06:32 PM Re: Am I right? 2nd Opinion... #Just Jay
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
Quote:
IMO, it should show $150 in the buyer's column on page two of the HUD, with a seller credit in the 200s on the front for $100.


I agree.
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#1547215 - 05/06/11 01:55 PM Re: Am I right? 2nd Opinion... Dan Persfull
Combustible Offline
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During our exams we've found OTI problems that are way out of the 30 day window. Is it too late to honor the tolerance cure, or should we cure just to be safe? IMO, better to show it has been caught and taken care of rather than not.

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#1547251 - 05/06/11 02:11 PM Re: Am I right? 2nd Opinion... Combustible
David Dickinson Offline
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Central City, NE
I think you should cure - no matter how late.
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#1547254 - 05/06/11 02:14 PM Re: Am I right? 2nd Opinion... David Dickinson
MB Guy Offline
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We are totally curing every violation that I have found when appropriate, and even going back into an area that had fairly lax compliance controls and reviewing every single loan made by that area. Just the right thing to do.
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#1547266 - 05/06/11 02:22 PM Re: Am I right? 2nd Opinion... MB Guy
#Just Jay Offline
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Cheeseheadland
IMO, it makes no difference if you are at day 30 or 31... if there is a cure under the new rules, you are obligated to disclose/reimburse it.
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#1547988 - 05/09/11 01:57 PM Re: Am I right? 2nd Opinion... #Just Jay
Patricia Offline
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Kansas
Way beyond the 30 days for disclosing the OTI which was paid by the seller so do we reimburse the full amount of the premium or just the amount that would have been out of tolerance?

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#1548033 - 05/09/11 02:29 PM Re: Am I right? 2nd Opinion... Patricia
Patricia Offline
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Kansas
bump

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#1548053 - 05/09/11 02:43 PM Re: Am I right? 2nd Opinion... Patricia
MB Guy Offline
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Same question I am trying to figure out Welsh.
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#1548070 - 05/09/11 02:59 PM Re: Am I right? 2nd Opinion... MB Guy
#Just Jay Offline
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#Just Jay
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Cheeseheadland
I would only reimburse the amount out of tolerance.
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#1548073 - 05/09/11 03:01 PM Re: Am I right? 2nd Opinion... MB Guy
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
All cures are subject to the applicable tolerance category of 0% and 10%. OTI falls in the 10% category.
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#1548097 - 05/09/11 03:20 PM Re: Am I right? 2nd Opinion... Dan Persfull
Patricia Offline
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Kansas
Okay. Thanks Dan and Just Jay.

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