Good afternoon!
I'm doing quality control on the broker loans for our bank. On one loan I'm looking at, on the final CD, I noticed a Lender Cure for fees above the legal limit and for the life of me, I could not get to that amount using the Loan Estimate provided to me. It was explained to me that the recording fees on the first CD--the 3 days before closing CD--had been entered as $129. For the final CD, they had been entered as $162, causing a tolerance violation and a cure. Here's the play-by-play:
First LE: 4-16-19 Recording Fees are $150
Change in Circumstance LE: 5-10-19 Recording Fees are $150
Prelim CD (3 days prior to close): 5-14-19 Recording Fees are $129
Final CD: 5-15-19 Recording Fees are $162 causing a $20.10 cure
I asked if the Prelim CD was also a rate lock or was intended to reset the tolerance in any way and I was told no. So if a prelim CD isn't resetting tolerances, shouldn't we be using the Loan Estimate numbers to match to the final FINAL CD? Not the preliminary CD, from 3 days before closing? There were other fees that changed from the 3 days prior to close CD and the final CD and those weren't being considered as a reset to the LE fees. There were other cures for an appraisal and for a pest inspection and those fees were based off the last LE amount, not the 3 day prior to close. I am so confused as to why these recording fees are different.
Thank you for your help.
Monica