We sell all of our loans, and now have one with an TRID error that none of our Investors will purchase. Is there any way to decline this loan? We would want to reopen under a new loan number and start over, honoring the same terms offered to the borrower.

Then why do you need to start over? You can't deny a loan because the bank screwed up.

Production wants to make a loan to this borrower...one they can sell to an Investor. So their solution (they think) is to cancel the one they screwed up and open a new one they can sell.

Well, good luck with that. If that was the case, why wouldn't you do that every time you made an error?? Just cancel the loan and start over. Not a whole lot of consumer protection in that approach. If you make a mistake and can't sell a loan, then you have a portfolio loan. Plain and simple and it is a risk that you take when you engage in mortgage lending.

I totally agree......but Production always wants to push the limits if they can, so I just had to ask. Thank you!

Ask who in Production, will speak to the examiner on why they denied a loan for a bank mistake? Surfer, it seems the bank is a small lender and a declined loan would certainly stand out.