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#2054030 - 12/14/15 05:58 PM Other charges on P&S Contract
Tracey, CRCM Offline
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Gorham, ME
Purchase and sales contract presented at time of application. Contract shows other fees that are part of the transaction (building inspection, oil pro-rations, etc.) So...

Does the LO make a good faith estimate of these charges and put on LE?
If yes, how do we verify the fees to put on the CD?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2054033 - 12/14/15 06:21 PM Re: Other charges on P&S Contract Tracey, CRCM
MonicaMc Offline
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If borrower is paying any part of those "other fees", then Yes, they go on the LE with good faith estimates.

In preparation of the CD, if our borrower is paying, or has already paid the fee, we require a copy of the invoice for our file.

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#2054058 - 12/14/15 07:34 PM Re: Other charges on P&S Contract Tracey, CRCM
Tracey, CRCM Offline
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Thank you Monica. That is what we are doing as well, but getting some push back.
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#2054323 - 12/15/15 09:14 PM Re: Other charges on P&S Contract Tracey, CRCM
John Burnett Offline
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If they aren't loan costs (not required by the lender), list them in Section H. Provide a good faith estimate of the cost of each such fee. They won't be subject to a tolerance check.
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#2054417 - 12/16/15 04:14 PM Re: Other charges on P&S Contract John Burnett
RolTyde Offline
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What if contract wasn't provided until after the initial LE was provided? Are we required to re-disclose the LE for services requested by the borrower and to be paid by them per the contract? I thought if we didn't have the contract at initial LE, we don't disclose again once receiving the contract just for borrower requested fees that we don't require. I'm being told differently and wanted to double check. Thanks!

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#2054419 - 12/16/15 04:19 PM Re: Other charges on P&S Contract Tracey, CRCM
raitchjay Offline
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I'm with you; my understanding of it is the only time you're listing such fees that you aren't requiring is when you have the purchase contract in hand at time of issuance of the LE. We don't re-disclose upon later receipt of the contract.
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#2054443 - 12/16/15 05:11 PM Re: Other charges on P&S Contract Tracey, CRCM
rlcarey Online
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I'm being told differently and wanted to double check.

Tell whoever is telling you that, that it is they whom need to do some double checking smile
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#2054495 - 12/16/15 06:51 PM Re: Other charges on P&S Contract rlcarey
RolTyde Offline
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rlcarey, I will do exactly that! Thanks for reassuring me. This leads to another question. Will we put this on the CD under "other" or ignore it since it wasn't on the LE? I haven't seen this exact question addressed.... that I remember anyway!

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#2054579 - 12/16/15 10:00 PM Re: Other charges on P&S Contract Tracey, CRCM
rlcarey Online
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It would just go on the CD under other.
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#2054580 - 12/16/15 10:01 PM Re: Other charges on P&S Contract Tracey, CRCM
RolTyde Offline
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Thanks!

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#2055954 - 12/29/15 02:25 PM Re: Other charges on P&S Contract Tracey, CRCM
RolTyde Offline
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Can someone provide me citation for not re-disclosing the LE just because contract has now been provided showing additional services requested not required for the loan? This would be in cases where the LE was issued prior to having the contract. I know this is correct but we sell our loans on the secondary market and our lender is holding up funding on a loan stating we should have done a changed circumstance once the contract was provided. I have searched the CFPB website but can't locate what I need.

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#2055969 - 12/29/15 03:01 PM Re: Other charges on P&S Contract Tracey, CRCM
raitchjay Offline
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OK
Those items in the contract would be unlimited tolerance items (the lender isn't requiring them). I'd be asking them where it says i have to re-issue. I'd just send them 19(e)(3) and ask them where it says i must re-issue for items in the contract received after issuance of the LE.
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#2055979 - 12/29/15 03:14 PM Re: Other charges on P&S Contract Tracey, CRCM
RolTyde Offline
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Thank you!

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#2055982 - 12/29/15 03:17 PM Re: Other charges on P&S Contract Tracey, CRCM
Truffle Royale Offline

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Ditto raitchjay. As I've said numerous times before, when you get investor pushback, ask for their compliance department. Nine times out of ten, it's someone on the frontline that is reacting to a checklist and holding up funding. When you tell them to take it to their compliance people, the issue often disappears. wink

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