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#2050316 - 11/18/15 06:30 PM Loan Estimate Software Error
ahou Offline
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ahou
Joined: Aug 2002
Posts: 3,094
Discovered that a fee that should be in the origination charge section is being disclosed in the 10% section opf the LE. This error has been corrected for the future, but occurred on 3 loans before it was discovered. One of these loans is set to close. Do we have to move it on the CD to the proper place as zero tol (and thus eat the fee) or leave it as is as technically in the wrong category. The fee amount will not change, so it doesn't pad the 10% category.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2050327 - 11/18/15 06:59 PM Re: Loan Estimate Software Error ahou
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
What is the fee for, if I may ask??
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#2050328 - 11/18/15 07:00 PM Re: Loan Estimate Software Error ahou
ahou Offline
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ahou
Joined: Aug 2002
Posts: 3,094
Draw fee
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#2050330 - 11/18/15 07:06 PM Re: Loan Estimate Software Error ahou
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Looks like they are going to get some free draws.
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#2050334 - 11/18/15 07:08 PM Re: Loan Estimate Software Error ahou
ahou Offline
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ahou
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That's what I was afraid of, but I told the loan dept I would ask smile
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#2050419 - 11/18/15 09:47 PM Re: Loan Estimate Software Error ahou
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
Be glad, very glad, that you caught this error so quickly.
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#2050448 - 11/19/15 05:09 AM Re: Loan Estimate Software Error ahou
Tesla Offline
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Joined: Nov 2003
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Why is a draw fee an origination charge? Is this a construction loan? I am freaking out here!
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#2050450 - 11/19/15 10:48 AM Re: Loan Estimate Software Error ahou
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,895
Galveston, TX
If they charge the fees upfront, they would be origination charges.
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#2050466 - 11/19/15 02:15 PM Re: Loan Estimate Software Error ahou
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
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Bloomington, IN
To whom are the construction draw fees being paid?

If paid to the financial institution they belong in Section A.

If paid to the appraiser they belong in Section B.
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#2050468 - 11/19/15 02:21 PM Re: Loan Estimate Software Error ahou
ahou Offline
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ahou
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They are paid to the bank, thus need to be in Section A
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#2050489 - 11/19/15 03:47 PM Re: Loan Estimate Software Error ahou
Tesla Offline
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In my case, the bank collects them but they are payable to the title company. This is a service they cannot shop for. Are we correct to disclose these under Section B?
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#2050528 - 11/19/15 06:15 PM Re: Loan Estimate Software Error ahou
ahou Offline
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ahou
Joined: Aug 2002
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If they are not allowed to shop, it is a zero tolerance item and goes in Sectionn B. If it were paid to the bank, it would go in A.
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#2050675 - 11/20/15 03:51 PM Re: Loan Estimate Software Error ahou
Tesla Offline
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Joined: Nov 2003
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OK- I freaked out there a bit. Thanks.
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