I would recommend calling the CFPB about the property taxes. The answer I was given was a bit confusing. The CFPB attorney differentiated the tolerance level depending upon whether it was a purchase or refi. With a refi being zero tolerance and a purchase being tolerance free. The reasoning, from what I could understand, being that in a purchase the prepaid taxes are a seller required item, while on a refi it's lender required.
I dutifully wrote down what he said and thanked him for his time. But still don't remain confident in that answer, so if anyone hears differently or gets more information I would love to know.
Can I carry this one more step. If we quoted the wrong PMI in the early TIL and corrected it in the final TIL and this caused and APR tolerance issue. IS the only thing we have to do is rediclosure and wait the timeframe before closing the loan?
If we quoted the wrong PMI monthly premium in the Loan Estimate, could we correct it in a new Loan Estimate?? Or do we correct it in the Closing Disclosure and reimburse if there is an APR tolerance issue and wait the timeframe before closing the loan?
"Success is going from failure to failure without a loss of enthusiasm." - Sir Winston Churchill
Was anyone able to figure out the answer to FLSCgirl's question? We are having a similar issue. We issued a quote for monthly PMI on an LE, the actual premium came back higher and is out of the APR tolerance. Not sure where to go from here.
First question: why did the actual premium come back higher? Did you have a valid CC that triggered it?
Otherwise, it depends on whether you're actually collecting any PMI at closing or not. If not, the only place the number figures in is on page 1 of the LE in the total payment calculation.
With most of the PMI companies now preferring to issue ZOMP (zero up front) we don't collect the first month OR a cushion for PMI. That takes it out of any APR calculation and makes life under TRID just a tad more bearable.
Not sure exactly what you mean by not collecting at closing, but if they are just making the monthly PMI payment, then you would not set this up to be included as a prepaid finance charge. However, if you have single premium upfront, or any policy that does have an upfront portion, then that would be categorized as a finance charge fee. You would also have to apply that amount to your QM and HC points and fees calculations.