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#2128873 - 05/02/17 08:32 PM Re: Charge on CD but not listed on LE mdog76
complyorelse Offline
Gold Star
Joined: Nov 2007
Posts: 448
U.S.
This is most helpful. Thank you all for responding.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2128893 - 05/02/17 10:27 PM Re: Charge on CD but not listed on LE mdog76
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,668
I still don't think the potential tolerance violation piece is being stated correctly. Depending on the numbers, I would expect a tolerance violation to show for the missing fee. You can't use an overestimate on the LE to contribute to the tolerance bucket for the CD comparison. In other words, if you quote $900 for a 10% bucket fee and then it ends up only being $500, you can't use the "extra" $400 for comparison purposes.

See the following thread for a good discussion on this:

https://www.bankersonline.com/forum/ubbthreads.php/topics/2102430/re-tolerance-confusion#Post2102430

As far as disclosing the "cure," the consensus on the thread is what Dan stated. If you catch the "cure" before or at closing you disclose as Lender Paid in the columns on Page 2 of the CD. If you discover the tolerance violation after closing, then you do have a cure where you cut a real check to the borrower in order to correct, along with doing a revised CD showing the corresponding Lender Credit and the cure language in the Calculating Cash to Close section. Here are some good discussions on that topic:

https://www.bankersonline.com/forum/ubbt...ges#Post2118393
https://www.bankersonline.com/forum/ubbt...aid#Post2109889

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#2129027 - 05/03/17 06:22 PM Re: Charge on CD but not listed on LE mdog76
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
if you quote $900 for a 10% bucket fee and then it ends up only being $500, you can't use the "extra" $400 for comparison purposes.

Justin I read the link you provided and I think you may have misquoted.

If I disclose $1500 for title services fees and all fees within that disclosure are charged but only come in at $1200 then $1500 is my tolerance baseline.

If however I disclose $1500 for title services fees and within that disclosure is $500 for a survey but the survey is not performed then my tolerance baseline is reduced to $1,000 (I can't use a service not performed to set my tolerance baseline) and the $1200 fee would put me over tolerance.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2129038 - 05/03/17 06:58 PM Re: Charge on CD but not listed on LE mdog76
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
This ^^
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#2129055 - 05/03/17 07:40 PM Re: Charge on CD but not listed on LE mdog76
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,668
@Dan -- Yes, I misquoted. It depends on whether the fee was charged or not.

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