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#2076872 - 05/04/16 12:14 PM Lender refunds fee after Closing
Antilles Offline
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Antilles
Joined: Jan 2007
Posts: 207
Southern US
This is in regards to a TRID loan. We had a lender refund part of an origination fee after closing for a "good customer". Do we need to re-disclose the Closing Disclosure or because it was an event after closing we need to just document the reason for the refund (memo to file)?
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#2076893 - 05/04/16 01:28 PM Re: Lender refunds fee after Closing Antilles
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,333
Quote:
We had a lender refund part of an origination fee after closing for a "good customer".


Yikes! I don't think the CD is the issue at all. Make sure the term "good customer" is specifically defined in your loan policy and make sure other "good customers" get the same refund.
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#2077004 - 05/04/16 05:48 PM Re: Lender refunds fee after Closing Antilles
Rocky P Offline
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Posts: 7,208
Florida
We had a lender refund part of an origination fee after closing for a "good customer".

Agree w/ swiggles - could be a fair lending issue unless defined and offered to similar circumstance customers.
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#2077156 - 05/05/16 12:46 PM Re: Lender refunds fee after Closing Antilles
NotDoneYet Offline
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NotDoneYet
Joined: Jul 2010
Posts: 482
PA
I think this would require re-disclosure.

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#2077158 - 05/05/16 12:58 PM Re: Lender refunds fee after Closing Antilles
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,009
Galveston, TX
I agree.
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#2077653 - 05/09/16 05:10 PM Re: Lender refunds fee after Closing Antilles
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,371
Bloomington, IN
Why on earth would a loan officer have authority to refund any fee without an exception approval?

I would be pulling this loan officer's files to see if they have made any such concessions to a protected class that has similar "good customer" characteristics.
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#2077730 - 05/09/16 07:59 PM Re: Lender refunds fee after Closing Dan Persfull
fmissle Offline
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Joined: Jul 2007
Posts: 953
Pac NW
Originally Posted By Dan Persfull
Why on earth would a loan officer have authority to refund any fee without an exception approval?

I would be pulling this loan officer's files to see if they have made any such concessions to a protected class that has similar "good customer" characteristics.


Just the white males who make over the median income for the area.

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#2077782 - 05/10/16 01:01 PM Re: Lender refunds fee after Closing Antilles
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,371
Bloomington, IN
Just the white males who make over the median income for the area.

I understand your comment smile .....but it does represent my concern...chances are this loan officer has not granted such a concession to a female or minority borrower with similar "good customer" characteristics....IOWs the bank is allowing a practice awaiting referral to the DOJ.

IMHO an individual loan officer should never have the authority to make pricing concessions. All such concessions should go through an approval process involving the appropriate committee and the loan officer presenting the concession should have no vote in the decision process.

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#2077789 - 05/10/16 01:23 PM Re: Lender refunds fee after Closing Antilles
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,333
Correct! And if your bank ever hits that rocky road towards the DOJ....even if it survives with no findings, you will NEVER want to travel that road again. I think it leads to Hades....honestly.
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