May I jump in here with a question, please? Lender fails to include a fee on the LE. (A fee that falls in the 10% category by the way.) The error is discovered just prior to closing. If we disclose the full fee amount on the CD it throws the APR off. We obviously have a tolerance cure here – we know.
1) If we disclose the full amount on the CD and then put the tolerance cure as paid by us, should that tolerance cure amount be figured into the APR? If it is NOT included in the APR calculation then we’re within APR tolerance. Same goes for lender credits – should they be included in the APR calculation?
2) What if we pay the full amount of the fee? Do we have to disclose it to the customer on the CD at all if they’re not being charged for it and was never aware of it?
Because it’s our error, obviously we feel that we shouldn’t penalize the customer by holding up the closing because we have an APR tolerance issue but we want to be compliant too.
Sure hope I make some sense. Because, quite honestly, I'm confused.