Depending upon which investor we sell to, our LE does not always reflect the correct late fee charges. Is this an issue? Our closing disclosure is always accurate.
If we know we are selling to a certain investor at closing we will disclose their late fee rather than our own since it will be sold within a few days.
I'm like John. What does the investor have to do with setting the late charges? Unless you are a national bank and have opted out under the mortgage parity act (if that even is still in effect) your late charges are governed by state law, not the investor.
So on our in-house loans we charge 5% or $10 which ever is greater. Our secondary market loans that we sell have a fee of 5%. Would we be in violation if our LE does not reflect the $10?