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#1661924 - 02/08/12 03:00 PM After 30 days... still need to cure?
M23 Offline
Junior Member
Joined: Oct 2009
Posts: 34
NC
I just had an internal audit last week which found three loans that needed to be "cured." All three loans are 30+ days after settlement and all of the RESPA rules I'm finding state cures can only be made within 30 days. Should I cure the loans anyway? Any guidance out there that I am missing? Thanks for your help...

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RESPA
#1661931 - 02/08/12 03:18 PM Re: After 30 days... still need to cure? M23
RulesFollower Offline
100 Club
Joined: Oct 2011
Posts: 185
You are right, RESPA doesn't give us any guidance on what to do after 30 days....but most think it is the right thing to do.

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#1661942 - 02/08/12 03:17 PM Re: After 30 days... still need to cure? M23
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I'm finding state cures can only be made within 30 days.

RESPA does not prohibit processing the cure after 30 days. The 30 days is your grace period. If you cure within 30 days you will be considered to have cured your violation of Sec. 5 of RESPA.

If you cure after 30 days you can still be cited for a violation but that will probably be all. If you do not cure after the 30 days you will most likely be cited for the violation and where you have 3 such loans an additional cite for a pattern and practice of violating Sec 5 can be cited and additional penalties could be added on top of a being ordered to cure.

My advice is to self-cure regardless when the tolerance violation is found.

_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1661944 - 02/08/12 03:20 PM Re: After 30 days... still need to cure? M23
M23 Offline
Junior Member
Joined: Oct 2009
Posts: 34
NC
Thank you!

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