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#1560657 - 06/03/11 09:14 PM Re: curing tolerance violations on the HUD #Just Jay
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
"how will an auditor know you gave the correct dollar amount on page 1?"

Most auditors probably know how to use a calculator.
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#1561040 - 06/06/11 06:39 PM Re: curing tolerance violations on the HUD Anonymous
David Dickinson Offline
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David Dickinson
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Posts: 18,762
Central City, NE
Quote:
I am meeting the RESPA requirement of refunding the dollar amount over the 10 % allowed but is it really a violation to show the credit on page 3?

Originally Posted By: BAL
Yes, I understand where to find the FAQs. But he notes 4/12/10 not 4/2/2010. Last known FAQs I'm aware of are from 4/2/2010. In order to be on the same page, I was hoping to have either a direct link or confirmation he meant FAQs from 4/2/10 and if so what page and question number does he see "tolerance buckets" noted?

Yes it was a typo. 4/2/10 was the last FAQs issued by HUD.

Maybe I'm reading this whole string wrong, but I'm going to vent: We try to help - free of charge. I make a typo, which I believe a reasonable person would have determined (Dan did with his link and Truffle commented as such) and some act like I'm making things up. We offer more guidance to back up our statements and we get told "prove it". Look up the FAQs yourself. It's there. Dan gives a link and we still get challenged. HUD has made this clear. We tell you what HUD says and we still get challenged. No thanks, just challenged.

Keep this in mind: all of the advise provided here at BOL is free of charge. All of us have things we could be doing besides helping you. I'm not asking anyone to believe me, just because I say it, but it would be nice to see some effort (research it yourself - especially when we hand you the source) and some appreciation.

Again, maybe I'm reading this wrong, but this string set me off. (Coming off the soapbox now)
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http://www.bankerscompliance.com

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#1561158 - 06/06/11 08:51 PM Re: curing tolerance violations on the HUD David Dickinson
#Just Jay Offline
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#Just Jay
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Cheeseheadland
::jumps up and down claping wildly::
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I don't repeat gossip, so listen closely...

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#1561167 - 06/06/11 08:57 PM Re: curing tolerance violations on the HUD Anonymous
MN Banker Offline
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Joined: Aug 2006
Posts: 980
Originally Posted By: Anonymous
If you don't show the credit on the comparison chart to bring the tolerance to within the 10% allowable how will an auditor know you gave the correct dollar amount on page 1? Putting the credit on page 1 is only showing half of "your work". I am meeting the RESPA requirement of refunding the dollar amount over the 10 % allowed but is it really a violation to show the credit on page 3?


Go to www.hud.gov/respa. On the right side of the page you will see a link that says "Watch the Webcast". It is a webcast that HUD did in March 2010. In it, they specifically state that they are correcting the FAQ mentioned above and that the comparison chart should show the violation.

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#1561225 - 06/06/11 09:54 PM Re: curing tolerance violations on the HUD MN Banker
Anonymous
Unregistered

Different Anonymous....
The way the HUD is currently programmed on our system certain lines on the HUD have to be "mapped" or written some where else. The HUD lines where the cure is shown happens to be some of the lines that have to be "mapped". The tolerance cure is currently "mapped" to the third page of the HUD.

Re-programming the form will be costly for the bank because the vender considers this "customization". It will also take time to have it corrected.

Should my bank stop using the HUD on our system and produce HUDs by hand for any HUDs with tolerance violations until we can resolve this?

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#1561241 - 06/06/11 10:12 PM Re: curing tolerance violations on the HUD Anonymous
rlcarey Offline
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rlcarey
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Galveston, TX
Re-programming the form will be costly for the bank because the vender considers this "customization". It will also take time to have it corrected.

If the program is wrong, they are most likely in violation of their contract with you. Someone higher up at your bank need to escalate the issue to someone higher up at your vendor.
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#1561249 - 06/06/11 10:48 PM Re: curing tolerance violations on the HUD Anonymous
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
Originally Posted By: Anonymous
Different Anonymous....
The way the HUD is currently programmed on our system certain lines on the HUD have to be "mapped" or written some where else. The HUD lines where the cure is shown happens to be some of the lines that have to be "mapped". The tolerance cure is currently "mapped" to the third page of the HUD.

Re-programming the form will be costly for the bank because the vender considers this "customization". It will also take time to have it corrected.

Should my bank stop using the HUD on our system and produce HUDs by hand for any HUDs with tolerance violations until we can resolve this?

To limit your risk, yes. If you decide the bank can live with the risk and potential violations/fines, then leave it alone. Generally for a defective control (your system) on a serious issue, a manual workaround is needed until the systemic fix is put in place.
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HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#1865596 - 10/28/13 05:39 PM Re: curing tolerance violations on the HUD Anonymous
Ralph U
Unregistered

Can the HUD Tolerance cure be paid as a credit by the TPO if we have them sign an agreement to do so?

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#1865599 - 10/28/13 05:40 PM Re: curing tolerance violations on the HUD Anonymous
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
TPO??
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#1865604 - 10/28/13 05:47 PM Re: curing tolerance violations on the HUD Anonymous
Anonymous
Unregistered

Third Party originator. ( Broker).

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#1865607 - 10/28/13 05:53 PM Re: curing tolerance violations on the HUD rlcarey
Ralph U
Unregistered

When we receive a GFE from our broker channel we are normally tied to the fees they disclose if we accept the loan in our system. If we were to add an agreement with the Broker to pay any of the fees that are above the tolerance, would that be a violation?

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#1865611 - 10/28/13 06:00 PM Re: curing tolerance violations on the HUD rlcarey
Ralph U
Unregistered

Broker

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#1865639 - 10/28/13 06:21 PM Re: curing tolerance violations on the HUD Anonymous
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
Commentary 1026.36(d)(1)

7. Permitted decreases in loan originator compensation. Notwithstanding comment 36(d)(1)-5, 1026.36(d)(1) does not prohibit a loan originator from decreasing its compensation to defray the cost, in whole or part, of an unforeseen increase in an actual settlement cost over an estimated settlement cost disclosed to the consumer pursuant to section 5(c) of RESPA or an unforeseen actual settlement cost not disclosed to the consumer pursuant to section 5(c) of RESPA. For purposes of comment 36(d)(1)-7, an increase in an actual settlement cost over an estimated settlement cost or a cost not disclosed is unforeseen if the increase occurs even though the estimate provided to the consumer is consistent with the best information reasonably available to the disclosing person at the time of the estimate. For example:

ii. Assume that when applying the tolerance requirements under the regulations implementing RESPA sections 4 and 5(c), there is a tolerance violation of $70 that must be cured. Provided the violation was unforeseen, the rule is not violated if the individual loan originator's compensation decreases to pay for all or part of the amount required to cure the tolerance violation.
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#1865652 - 10/28/13 06:30 PM Re: curing tolerance violations on the HUD rlcarey
Anonymous
Unregistered

Thank you!

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