A loan closes with an internal appraisal fee listed in section B rather than section A as required. The amount is correct and the "vendor" indicated is the bank so there is no confusion over who is being paid for the service.

A new CloD will be issued to reflect what correct totals in sections A and B should have been at settlement, with the appraisal service fee moved to section A. As a result, fees indicated as paid to lender are increasing while fees the borrower cannot shop for are decreasing in kind.

Would moving this fee to the appropriate location require restitution? The charge "paid by or imposed on the consumer" [1024.1919(e)(3)(i)] is not changing but there is a violation due to the service that should have been disclosed as a fee to the creditor pursuant to 1026.37(f)(1) having been disclosed in a section reserved for payments to third parties pursuant to 1026.37(f)(2).

I believe you will find plenty of threads that support no tolerance issue on this type of placement error. The dollar amount is still fine...your software, however, can't tell what caused the perceived issue.

Thanks RR, I have been searching through the forum for all of the keywords I can think of and hadn't been able to find such a discussion.

Technically, you have a violation because you placed the fee in Section B on the LE and it should have been in Section A. How you move forward is a bank decision.

And totally agree with Randy, it's still a violation of improper placement.