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#2146884 - 09/20/17 06:30 PM LE - Possible Tolerance Cure?
WMK368 Offline
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Joined: Jul 2017
Posts: 9
We have a situation where a fee was properly disclosed in Section B since it was payable to a third party, but during the course of the loan a process was changed that now makes the fee payable to the lender and, therefore, must be moved to Section A, would this create a tolerance cure? The fee was originally disclosed to the customer and remains a zero tolerance item, the only difference is where it is placed on the LE.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2146885 - 09/20/17 06:33 PM Re: LE - Possible Tolerance Cure? WMK368
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,356
Galveston, TX
More of a business decision, either section is zero tolerance. Not even sure that is addressed anywhere.
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#2147036 - 09/21/17 04:28 PM Re: LE - Possible Tolerance Cure? WMK368
Compliance NABW Offline
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Joined: Oct 2015
Posts: 1,597
As Randy stated, it is more of a business decision that is not specifically addressed by the Regs. Your LOS may show this as a tolerance cure, but at my prior employer I would authorize an override as long as moving the fee was between similar tolerance buckets, i.e. such as moving from a Section B 0% fee to a Section A 0% fee. I would allow this as long as it was originally disclosed and we kept to the same fee standard. I would also allow this when the fee was just mistakenly placed in the wrong section.

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