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#2085977 - 06/29/16 07:33 PM Revised closing disclosure after loan closing?
complynewbie13 Offline
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Joined: Dec 2014
Posts: 146
Minnesota
We just closed a loan for which we established an escrow account. After the loan closed, we got a bill from the insurance company saying that they need another $75.00 (they miss quoted or something on the original quote). Does the bank now need to send out a revised closing disclosure and pay for the $75.00 out of our own pocket since this is different from what we originally disclosed? I see this example in the regulation:

1026.19(f)(2)(iii)
iv. Assume consummation occurs on a Monday and the security instrument is recorded on Tuesday, the day after consummation. Assume further that ten days after consummation the municipality in which the property is located raises property tax rates effective after the date on which settlement concludes. Section 1026.19(f)(2)(iii) does not require the creditor to provide the consumer with corrected disclosures because the increase in property tax rates is not in connection with the settlement of the transaction.

Would our example of getting another bill for insurance be the same as this tax scenario? Would we be able to have the customer pay the insurance company or us just pay it out of escrow and it would appear in their annual statement? I am unsure if we can do this, or if we need to pay the insurance company the $75.00, redisclose and eat the money.



thanks,

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TRID - TILA/RESPA Integrated Disclosures Rule
#2085980 - 06/29/16 07:39 PM Re: Revised closing disclosure after loan closing? complynewbie13
rlcarey Online
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rlcarey
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Galveston, TX
If they misquoted the insurance, why are they not eating the $75.00??

If you can't manage that, then pay it out of the escrow account.
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#2086008 - 06/29/16 09:00 PM Re: Revised closing disclosure after loan closing? complynewbie13
complynewbie13 Offline
100 Club
Joined: Dec 2014
Posts: 146
Minnesota
Very good question. I don't know why the insurance company is not eating it....it would be nice. So either put up a fuss with the insurance company, or pay it out of escrow. No redisclosure necessary.
Last edited by complynewbie13; 06/29/16 09:01 PM.
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#2087360 - 07/11/16 02:08 PM Re: Revised closing disclosure after loan closing? complynewbie13
Cheli Offline
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Cheli
Joined: May 2013
Posts: 919
Hi - I have a similar question regarding the property tax. For the ST of MI, property tax is provided by the county on July 1st (summer) and Dec 1st (winter). For loans that close in June and November, our processors have to "estimate" the property tax on the CloD. Once in awhile we under estimate. 1) do we have to eat the difference once the actual bill comes in and it is higher than we estimated 2) If so, using the aforementioned cite 1026.19(f)(2)(iii), do we have to re-disclose a CloD?

Thoughts?

Thank you! :-)

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#2087379 - 07/11/16 02:59 PM Re: Revised closing disclosure after loan closing? complynewbie13
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
Posts: 1,742
The Mitten State
I am in Michigan as well, and for loans that close in June and November, our processors use the figures from the title work for the previous year taxes. Any shortage or overage is covered in our escrow analysis, and payments are adjusted then.
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#2087389 - 07/11/16 03:37 PM Re: Revised closing disclosure after loan closing? complynewbie13
Cheli Offline
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Cheli
Joined: May 2013
Posts: 919
Hi JWills...That thought crossed my mind but I didn't know if we could really do that...? So if any shortage (or overage) comes up, you do NOT re-issue a CloD, your FI reflects the changes in the Escrow Analysis?

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#2087404 - 07/11/16 04:19 PM Re: Revised closing disclosure after loan closing? complynewbie13
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
Posts: 1,742
The Mitten State
To be honest with you, I don't recall that we have had any to deal with.
_________________________
Nonsense wakes up the brain cells.

--Dr. Seuss

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#2087428 - 07/11/16 05:52 PM Re: Revised closing disclosure after loan closing? complynewbie13
Cheli Offline
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Cheli
Joined: May 2013
Posts: 919
How do you get it right? ie: accurate with estimated #s for June/November closings?

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#2087921 - 07/14/16 01:07 PM Re: Revised closing disclosure after loan closing? complynewbie13
Cheli Offline
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Cheli
Joined: May 2013
Posts: 919
Is anyone (the lender) paying the difference if an estimated tax bill was underpaid by the borrower, once the actual bill is released by the government?

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