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#2189009 - 08/14/18 03:21 PM Issuing checks to borrowers- tolerance violation
angela aniol Offline
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Joined: Nov 2017
Posts: 48
It seems I read conflicting information and need help. Once again. This is my scenario: issued an LE with an appraisal fee of $400. Issued final CD with an appraisal fee of $515. The loan is closed and the borrower is in their new home. Since we charged the borrower for more than what was disclosed to on the LE (no CIC LE ever issued) we have to refund the borrower $115 and provide a corrected CD showing a Lender Credit of $115? Thanks again.

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#2189035 - 08/14/18 04:52 PM Re: Issuing checks to borrowers- tolerance violation angela aniol
rlcarey Online
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rlcarey
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Posts: 83,225
Galveston, TX
we have to refund the borrower $115 and provide a corrected CD showing a Lender Credit of $115?

Yes
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#2189120 - 08/14/18 09:21 PM Re: Issuing checks to borrowers- tolerance violation angela aniol
angela aniol Offline
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Joined: Nov 2017
Posts: 48
Thanks. Although I just found out this was a no-cost loan so the borrower never paid us the $115 so we are just providing a lender credit on page 2, section J.

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#2189121 - 08/14/18 09:27 PM Re: Issuing checks to borrowers- tolerance violation angela aniol
rlcarey Online
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rlcarey
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Galveston, TX
So you listed the appraisal fee as paid by lender on the CD originally? Or you listed it as paid by borrower and you are going to be increasing the original lender credit by $115?
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#2189159 - 08/15/18 02:01 PM Re: Issuing checks to borrowers- tolerance violation angela aniol
John Burnett Offline
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John Burnett
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Cape Cod
First, make sure the CloD reflects what was actually paid and by whom. If the borrower didn't pay the appraisal fee, there is no tolerance violation, and no cure is required.

If the CloD was incorrectly completed because it doesn't reflect who paid what, you do need to issue a corrected CloD.
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#2189405 - 08/16/18 05:26 PM Re: Issuing checks to borrowers- tolerance violation rlcarey
angela aniol Offline
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Posts: 48
We listed it as paid by lender on the initial LE

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#2189414 - 08/16/18 05:49 PM Re: Issuing checks to borrowers- tolerance violation angela aniol
rlcarey Online
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rlcarey
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Posts: 83,225
Galveston, TX
OK - but on the LE you just list lender credits, both general and specific on one line. How was the appraisal shown on the CD? As a specific lender credit (Paid by Others column) or a general lender credit in Section J?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2189419 - 08/16/18 05:57 PM Re: Issuing checks to borrowers- tolerance violation rlcarey
angela aniol Offline
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Joined: Nov 2017
Posts: 48
Section J

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