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#2069479 - 03/16/16 01:24 PM Fee on Loan Estimate but not charged at Closing
jmm Offline
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Joined: Mar 2015
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I am wondering how everyone is treating a fee that is listed on the loan estimate but not charged on the closing disclosure. Is this amount not included in the loan estimate column on the calculating cash to close comparison on page three of the closing disclosure? Is this a manual process to remove the item or is the system removing it? I have not been able to find a reference for this, but believe it has been mentioned in some trainings.

Thanks in advance for the help.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2069489 - 03/16/16 01:33 PM Re: Fee on Loan Estimate but not charged at Closing jmm
rlcarey Online
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rlcarey
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Galveston, TX
The amounts listed in the LE cash to close column are the amounts disclosed on the last properly issued LE.

How you determine the impact of the fee not being assessed in any tolerance calculation happens in the background.
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#2072295 - 04/04/16 06:25 PM Re: Fee on Loan Estimate but not charged at Closing jmm
Steven Cayouette Offline
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Joined: Nov 2013
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Rhode Isalnd
Any fees on Loan Estimate but not charged at the closing must be disclosed in the "Loan Estimate" Column of the Calculating Cash to Close. You will also need to respond Yes to the question "Did this Change?" and provide an explanation.

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#2072336 - 04/04/16 09:02 PM Re: Fee on Loan Estimate but not charged at Closing jmm
John Burnett Offline
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John Burnett
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Cape Cod
It gets included in the Loan Estimate column of the CCtoC table on the closing disclosure. You'll indicate that the amount changed in that table, and provide an explanation on where to look for the differences.

If it's a 0% tolerance item, there will be no impact on any cure calculation, since a reduction (or elimination) of such a fee does not create a cure.

If it's a 100% tolerance item (no tolerance limit, it won't matter, either.

If it's a 10% tolerance item, you start with your aggregate total of the 10% costs from the loan estimate(s), and deduct the full amount of the cost for the service(s) that was/were not used, to arrive at a new baseline for the aggregate costs (you are eliminating the service from the group). Calculate your 10% increase limit based on the reduced baseline for the group and compare it to the actual cost for the same services.
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#2072509 - 04/05/16 05:18 PM Re: Fee on Loan Estimate but not charged at Closing jmm
Baker Offline
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Joined: Nov 2005
Posts: 777
Washington State
If you have a changed circumstance that does not increase the fees greater than a tolerance (for example increases fees by 5% not 10%) and the officer issues a new LE. I understand we are held to the original LE. Should we also be pulling the LE numbers for the CC to C table from the original LE?

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#2072649 - 04/06/16 04:11 PM Re: Fee on Loan Estimate but not charged at Closing jmm
John Burnett Offline
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John Burnett
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Cape Cod
The numbers for the Loan Estimate column of the Calculating Cash to Close table should be those on the most recent LE, whether they reflect the actual "good faith basis" for those costs. That allows the consumer to match the numbers from one form to the other.

The actual good faith tolerance check is done off on another document/spreadsheet/platform. The borrower doesn't even see it (but you need to retain it in file). In the tolerance check, you would use the "correct" amounts rather than the ones that were increased on the LE without benefit of a changed circumstance.
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#2072682 - 04/06/16 05:26 PM Re: Fee on Loan Estimate but not charged at Closing jmm
rlcarey Online
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rlcarey
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Galveston, TX
and the officer issues a new LE.

The more forms delivered the more chances for screwing up. Get them to stop and it solves much of your dilemma..
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