On the Loan Estimate, we quoted the appraisal fee as $475. That was the amount listed as well on the Closing Disclosure, and it was the amount paid by the borrower. After closing we discovered that the appraisal actually cost $495. We're creating a corrected Closing Disclosure to show the correct amount, with a tolerance cure of $20. Do we have to refund $20 to the borrower? I don't think so since the borrower didn't have to pay the full amount, but tolerance cures and TRID don't always make sense. We want to make sure we do this correctly. Thank you.

No, just pay the appraiser the $20 yourself and send out the corrected CD showing the corrected appraisal fee. You don't have to double the cure.

Thank you!

I believe I would do the correction like this:

$475.00 paid by borrower [borrower column]
$20.00 paid by others[L] in other's column

I started to add that to my original post Joker....and then i had a thought in the back of my head that that was only allowed if the overcharge was caught pre-consummation. That way makes imminently the most sense to me though.

Thank you both for your quick and clear responses!

Technically you do not need to send a revised CD if the cost actually paid by the borrower did not change.

iii. Assume consummation occurs on a Monday and the security instrument is recorded on Tuesday, the day after consummation. During the recording process on Tuesday the settlement agent and the creditor discover that the property is subject to an unpaid $500 nuisance abatement assessment, which was not disclosed pursuant to § 1026.19(f)(1)(i), and learns that pursuant to an agreement with the seller, the $500 assessment will be paid by the seller rather than the consumer. Because the $500 assessment does not result in a change to an amount actually paid by the consumer, the creditor is not required to provide a corrected disclosure pursuant to § 1026.19(f)(2)(iii). However, the assessment will result in a change to an amount actually paid by the seller from the amount disclosed under § 1026.19(f)(4)(i). Pursuant to § 1026.19(f)(4)(ii), the settlement agent must deliver or place in the mail corrected disclosures to the seller no later than 30 days after Tuesday and provide a copy to the creditor pursuant to § 1026.19(f)(4)(iv).

I'm not sure I can agree that that cite would cover a lender error though. In that example, you still owe a corrected disclosure, but to the seller as it affected him directly. I'm not sure just how that would WORK post SALE though I mean if it already disbursed, seems you'd be at the mercy of the seller.

At any rate, I feel in the OP's case, we are required to disclose the true charge which would have been $495.00 via a corrected disclosure to total $495.00 as it actually was.

The final rule requires redisclosure only for post-consummation events that change an
amount actually paid by the consumer. The Bureau does not believe consumers would benefit
from revisions to the Closing Disclosure due to post-consummation events that do not affect
charges imposed on them. Further, the Bureau believes this approach is consistent with RESPA
and Regulation X. RESPA section 4 provides that the settlement statement shall contain the
amount imposed upon the consumer in connection with the settlement. Regulation X
§ 1024.8(b)(1) provides the general rule that the settlement agent shall state the actual charges
paid by the borrower and seller on the RESPA settlement statement. Thus, the Bureau believes a
redisclosure to the consumer after consummation should be required only if a subsequent event
changes a charge actually paid by the consumer and not for any change to the transaction.

Thanks, Dan.