It finally happened...a reissue the LE question I cannot find any answer for either here or at CFPB website, etc.

Rate lock agreement received so we're doing a revised LE to mark 'yes'.
The lender neglected to put six (6) title fees on the original LE and wants them added now.
My knee jerk reaction is that they're not part of the cc so don't add them.

The confusion comes from the fact that the LE should be informative to the borrower.
So do we or do we not put the additional title fees on the revised LE but NOT reset the baseline?
Do we put a lender credit for the total of these fees on the revised LE?

Guess our luck at getting it right the first time just ran out....

Your lender will get a lesson in doing it right the first time. You can't add a cost to a revised Loan Estimate that you simply forgot (or increase one that you mistakenly low-balled) just because you have an opportunity to issue the revised LE. You are stuck with the amounts you disclosed on the first LE UNLESS the changed circumstance directly affects the cost in question. For example, if you estimated an appraisal fee at $500 and found out later than a different type of appraisal is needed because the house is constructed in a certain way, that would be a changed circumstance that warrants a redisclosure and increase of the appraisal cost. But you can't sneak in a cost that you left out on the original LE, because there's no changed circumstance affecting that cost.

The only changed circumstance you are dealing with is the rate lock, and you have to issue a revised LE even if there are no affected costs, to provide the "YES" and the expiration date and time (including time zone) for the rate lock. If locking the rate affected other costs, you can adjust them in the revised LE.

Under the regulation, the bank is stuck with paying those title fees unless the borrower's intent to proceed hasn't yet been received and isn't received until more than 10 business days have passed since the initial LE was provided.

John, In the same vein. We have to order a second appraisal as the first one expired. The bank is going to absorb the cost of the second appraisal and therefore is showing a $500.00 credit to offset the second appraisal. The problem is my LOS is indicating I have a GFE tolerance violation when I show both appraisals and a credit, which makes me believe I must reissue an LE, but I don't think I have a valid COC and I don't want my baseline reset. I can't find anything specific to the bank absorbing a cost and whether that would require a new LE to the borrower?

Any guidance would be helpful!

If the bank is absorbing the cost of the second appraisal, then there is no change of circumstance that is causing the borrower to pay additional fees and therefore the second appraisal does not appear on either the LE or the CloD.

John,
one additional thing, if they are shown and then the bank inserts a lender credit for the amount of fees left off... is this not permitted?

When you get to the Closing Disclosure, you can omit the second appraisal entirely, as Randy has suggested. Or, you can include it in one of two ways.

The first option is to include the cost of the second appraisal in the Borrower-Paid column, which will create a "cure" requirement that will make you include the cost of the second appraisal in a Lender Credit in Section J, along with the "mea culpa" verbiage required in both the Lender Credit line and on the Closing Costs line in the Calc. Cash to Close table.

The second option, and the one that I recommend if you decide to include the cost of the second appraisal on the CloD, is to put the cost in the Paid by Others column, tagged with an "(L)," which excludes the cost from the Closing Costs amount in the Calc. Cash to Close Table, so there is no cure requirement.

The math of the CloD should come out the same as far as the Cash to Close calculation under all three methods.