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#2194871 - 10/05/18 11:39 PM Tolerance Issue?
BA13 Offline
Member

Registered: 07/22/16
Posts: 76
On 10-4-18 we hand delivered the CD to the borrower (borrower picked it up). Later that day the borrower called to say the roof repair had not been completed. This repair was an agreement between buyer and seller and not a lender / appraisal requirement. More than likely the investor will require an escrow holdback for the roof and an inspection will need to be completed to prove it was done. I'm guessing it will be the appraiser that performs this inspection. We now have an added $150 inspection fee. This situation also creates a rate lock extension issue. The buyer/borrower will pay for the rate lock extension ($500+). We issued the CD in good faith then it became inaccurate because we have new information - roof repair inspection fee & rate lock extension. Do these two added fees create a tolerance issue for us?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2194875 - 10/06/18 12:48 PM Re: Tolerance Issue? [Re: BA13]
rlcarey Online
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Registered: 07/16/01
Posts: 68315
Loc: Galveston, TX
The CFPB closed the black hole and you can use a subsequent CD, just like a revised LE to reset your tolerance baselines in the event of a valid changed circumstance. The same three business day rule to re-issue the revised CD once you have knowledge of the changed circumstance still applies.
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#2194876 - 10/06/18 04:35 PM Re: Tolerance Issue? [Re: BA13]
BA13 Offline
Member

Registered: 07/22/16
Posts: 76
Good to hear. I'll be sure to pass this along to all the lenders. Thank you Randy!

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#2194907 - 10/09/18 12:50 AM Re: Tolerance Issue? [Re: BA13]
Truffle Royale Offline


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Registered: 07/09/03
Posts: 16843
I didn't catch that the three day but carried over to the CD reissue, Randy. Thanks!

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#2194925 - 10/09/18 02:18 PM Re: Tolerance Issue? [Re: BA13]
John Burnett Offline

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Registered: 10/27/00
Posts: 37403
Loc: Cape Cod
If you obtain information that a cost will increase by more than the applicable tolerance limit the day you sent or delivered the CD for the loan, you can't use a revised LE to adjust your good faith estimate for that cost, but, as Randy said above, the Bureau's "TRID 2.1" rule allows you to issue a revised CD to accomplish the task. That revised CD must be provided or sent no later than 3 business days after learning of the increase, or at the closing, whichever comes first.
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John S. Burnett
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