To clarify my earlier post -- If the seller cost in question was missing from the closing disclosure received by the borrower three days before closing, but was identified at or before consummation, it should have appeared on a final closing disclosure given to the borrower at or before closing. If that is the auditor's comment, I agree. But if was omitted from the latest closing disclosure provided to the borrower, the omission would be a technical violation if the creditor knew or ought to have known of the cost (good faith efforts), but incurable. From the original description of the scenario, I believe the fact was known at closing, which would have afforded the creditor the opportunity to issue a revised disclosure on the spot.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8