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#1871224 - 11/14/13 06:41 PM How to cure for late GFE on a no cost loan
mac444 Online
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In the case when the MLO provides a late GFE (a month later!) how do you cure when lender is paying for third party fees?

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RESPA
#1871235 - 11/14/13 06:45 PM Re: How to cure for late GFE on a no cost loan mac444
rlcarey Online
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You might want to do a search on "+gfe +late +delivery".That horse quit breathing a while ago.
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#1871259 - 11/14/13 07:05 PM Re: How to cure for late GFE on a no cost loan mac444
RR Joker Offline
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Also refer to HUD's roundups.
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#1871285 - 11/14/13 07:40 PM Re: How to cure for late GFE on a no cost loan mac444
mac444 Online
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Yes, per roundup, the HUD comparison section GFE columns to show with $0 and actual fees on HUD-1 column. So lender will show credit for the 3rd party fees for the no cost loan in the 200 lines and then issue credit to cure for tolerance violation(s)!

But it also reads ..."loan originator may cure the tolerance viloation...
Last edited by mac444; 11/14/13 07:51 PM.
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#1871296 - 11/14/13 07:58 PM Re: How to cure for late GFE on a no cost loan mac444
RR Joker Offline
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Poor choice of wording...curing isn't optional.

In your case, the borrower hit the jackpot...lender paying twice and partly twice.
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#1871302 - 11/14/13 08:04 PM Re: How to cure for late GFE on a no cost loan mac444
rlcarey Online
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Malarkey - you have a violation for delivering a GFE late. There is nothing in the law or regulations that support giving a free loan for the late delivery of a GFE. Not delivering a GFE at all is a different issue. That is what I meant about beating a dead horse. Do what you want on a late GFE - but there is no legal or regulatory requirement to do anything.
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#1871307 - 11/14/13 08:15 PM Re: How to cure for late GFE on a no cost loan mac444
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Point taken. And you may be right. The way they worded that section was vague (in clear violation) as well and could be taken more than one way (and has been by regulatory agencies). Having said that...the spirit and intent of RESPA is broken by delivering a month late. I'll defend a couple of days...I will not defend a month delay in delivering, which in my opinion would be a clear violation.
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#1871310 - 11/14/13 08:18 PM Re: How to cure for late GFE on a no cost loan RR Joker
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I would rather fire a loan officer than deprive the bank and more importantly the shareholders of the bank any income based on my opinion. If you are dealing with a one-off situation, I would say skrew it. If the regulators have the guts and the legal opinion behind them to order me to pay restitution, bring it on.
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#1871314 - 11/14/13 08:23 PM Re: How to cure for late GFE on a no cost loan mac444
Truffle Royale Offline

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I certain my examiners wouldn't even give me the chance to defend a GFE that was delivered a month late so I'm with Joker on this one.

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#1871317 - 11/14/13 08:25 PM Re: How to cure for late GFE on a no cost loan mac444
RR Joker Offline
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The very few times I've ordered a loan 'free', it's been with the blessing of management and legal council. Luckily, our loans are not fee intensive secondary market loans. Driving the point of timliness home far outweighs allowing it to slide and risk continued uh-ohs by letting it go.
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#1871319 - 11/14/13 08:27 PM Re: How to cure for late GFE on a no cost loan mac444
Truffle Royale Offline

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Goodness, Randy! While I understand what you're trying to say, I certainly don't have the power to get someone fired. I'm sure there's more to the OP's story.

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#1871323 - 11/14/13 08:31 PM Re: How to cure for late GFE on a no cost loan mac444
rlcarey Online
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Well, if I have a loan officer that is getting into the pockets of the bank's shareholders for no good reason other than laziness or lack of the ability to absorb training that has been going on for over 3 years now - why should they not be fired. You fire a teller if they come up $500 short. This is no different and it is totally different than making a loan that goes bad. Bad loans are part of the risk of any underwriting process. But like you said, there is probably more to the story.
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#1871347 - 11/14/13 08:59 PM Re: How to cure for late GFE on a no cost loan mac444
mac444 Online
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Thank you all for your input!

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#1871361 - 11/14/13 09:06 PM Re: How to cure for late GFE on a no cost loan mac444
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If this were a 2ndary market loan, it would be subject to rejection or repurchase for non compliance with early disclosures.
Last edited by hgliii; 11/14/13 09:08 PM. Reason: clarification
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