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#1960332 - 09/09/14 02:38 PM Tolerance cure found during audit
ADN Offline
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Joined: Mar 2007
Posts: 205
Our internal auditing department found a settlement statement that required a tolerance cure, however it was not given at closing or within 30 days of closing. Should the bank (90 days after closing) send a cashiers check to the borrowers for the cure amount?

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RESPA
#1960341 - 09/09/14 02:45 PM Re: Tolerance cure found during audit ADN
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
Posts: 1,764
The Mitten State
We had this happen, and we were told to send a corrected HUD1 statement as well as cashiers check with an explanation
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#1960371 - 09/09/14 03:40 PM Re: Tolerance cure found during audit ADN
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,360
Absolutely do the correction when you find the need for it!
Your audit report goes to the examiner so they're going to see this too.
No way do I want to be left stammering that it was past the 30 days so we didn't cure!
As has been often stated in these threads, the 30 days is the time period where you can correct with no harm/no foul. It doesn't say that you shouldn't correct later. It unspokenly seems to allude to the fact that you could get dinged for not catching it sooner tho.

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#1960412 - 09/09/14 04:23 PM Re: Tolerance cure found during audit Truffle Royale
ADN Offline
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Joined: Mar 2007
Posts: 205
Thanks for the responses!

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#1961143 - 09/11/14 02:12 PM Re: Tolerance cure found during audit ADN
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
The 30 days is only offered as a 'free pass' from a violation...it has nothing to do with correcting the error regardless of when discovered.
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My opinion only. Not legal advice.

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