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#2120052 - 03/01/17 05:31 PM CD-fees chosen off our list; put in Section C
iheartcompliance Offline
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We issued a CD to an applicant with the fees listed in the wrong section. The borrower chose services off of our list and we inadvertently kept the fees as services they did shop for, Section C. Can we re-issue the CD and move the fees into Section B?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2120063 - 03/01/17 06:03 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
RR Joker Offline
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The Swamp
You can...but the bigger issue is make sure you didn't exceed your 10% tolerance.
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My opinion only. Not legal advice.

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#2120069 - 03/01/17 06:10 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
Truffle Royale Offline

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I think it's more of a 'you must'. The CD needs to be corrected. If moving the fees puts you out of tolerance, you need to cure. Assuming this loan has already closed, that's what the 30 day window to fix is for.

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#2120081 - 03/01/17 06:32 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
iheartcompliance Offline
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The borrower did not shop for any fee. They chose providers off of our list. The fees should have been moved to section B, but were disclosed in section C as fees they did shop for. The CD was issued just this morning, but the loan does not close until next week.

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#2120082 - 03/01/17 06:37 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
iheartcompliance Offline
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This is the way it was originally disclosed:

B. Services Borrower Did Not For
01 Credit Report to XYZ

C. Services Borrower Did For
01 Title - Final Abstract Search to ABC
02 Title - Title Examination Fee to DEF
03 Title - Title or Abstract Search to ABC

This is the way it should be disclosed:

B. Services Borrower Did Not For
01 Credit Report to XYZ
02 Title - Final Abstract Search to ABC
03 Title - Title Examination Fee to DEF
04 Title -Title or Abstract Search to ABC

C. Services Borrower Did For

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#2120083 - 03/01/17 06:41 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The borrower did not shop for any fee. They chose providers off of our list.

Just to be clear. In this scenario the borrower chose a service provider disclosed on your list. Is this correct? When someone refers to the borrower choosing "off list" my first thought is they chose a service provider not disclosed on the list.

If that that is the case I agree with RRJ and TR and as RRJ stated make sure there is no tolerance issues to cure. You will also need to be sure they are properly marked in your software to make sure they are labeled correctly for comparison purposes.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2120084 - 03/01/17 06:42 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
Truffle Royale Offline

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Issued AND DELIVERED this morning?
If not delivered, no harm no foul.
If delivered, fix it and either deliver now or at the closing table.
Again, double check that you don't have to cure anything by moving from C to B.

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#2120085 - 03/01/17 06:44 PM Re: CD-fees chosen off our list; put in Section C iheartcompliance
iheartcompliance Offline
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Good point, Dan. They chose providers from our list. Software, haha that is a work in progress, and that is actually what caused the error. However, we should have caught it and made adjustments when we reviewed the document...prior to it going out to the borrower.

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