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#1966835 - 10/03/14 02:12 PM Denial? Counteroffer? C/C?
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Don't ask me why we did this, but we did......processors are calling me asking me what they should do and the lender is out today.
This is what I find when looking at the transaction -
1. Initial application is for 30/5 ARM
2. We disclose GFE based on the 30/5 ARM
3. Loan officer and processing manager later find out that we can't do 30/5 ARM on a doublewide, so they have changed the product to a 20/5 with a higher rate.

If this were a valid changed circumstance, the redisclosure must go out today. However, I don't believe it to be a valid changed circumstance, because it is not requested by the borrwer rather we just realized that our policy doens't allow for these terms. What should we do? Should we treat as a denial and counteroffer or do a brand new application or do you believe it to be a valid changed circumstance? And if by counteroffer, we wouldn't have disclose anything right now correct....only if the client accepted the counteroffer would we redisclose at that time within 3 days (is this correct)?
Last edited by Shopgirl; 10/03/14 02:15 PM.
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RESPA
#1966849 - 10/03/14 02:25 PM Re: Denial? Counteroffer? C/C? Shopgirl
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,228
Galveston, TX
What fees are changing on the GFE that would make a difference whether you treated this as a change in circumstances or not?

If all that is changing are the terms and the interest rate - issue a new TILA disclosure and you are done.
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#1966927 - 10/03/14 04:46 PM Re: Denial? Counteroffer? C/C? Shopgirl
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Gosh Randy.......you make everything so simple. I just was trying to make it too difficult. Yes you are absolutely correct. The fees will remain the same and therefore we will just reissue a TIL. Thanks so much.

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