Not sure if I agree.
In order to issue a revised LE there needs to be a CIC, and in this case the error is not a CIC, so a revised LE cannot or should not be issued. But assuming there is no fee tolerance issues, what prevents the lender from issuing their CD disclosing the PMI and closing the loan accordingly? Document the error in the file and make sure it does not happen again, and UDAP should not be an issue, either. What am I missing?
Just my opinion, I could be wrong. - Dennis Miller