Good Morning,

We have an instance where a loan officer did not issue a Loan Estimate in a real estate loan that is subject to TRID. I'm not sure why this was missed, and management is handling the training and corrective issues separately from the Compliance Department. The question that came to me is how do we proceed with the transaction in the best way possible according to the law? I have two diverging thoughts, and am not comfortable jumping on either one.

Thought 1: we disclose a Loan Estimate while noting an exception for late delivery, wait a few days, disclose our CD, and ensure the transaction is not closed less than 7 days following the Loan Estimate delivery and 3 days following CD delivery.

Thought 2: we disclose the LE with all 0% and 10% tolerance fees as paid by the lender (since we failed to disclose in a timely manner, thinking that means we basically disclosed everything at $0), and follow the timing requirements for closing as described above.

Or is there a third way to handle this that's even better? I really appreciate everyone's perspective on this one.

Thanks,

R. Shackleford

I would go with your first thought.

Thanks, Randy.

I agree with Randy. Go with the first thought. I'd also recommend making sure the training and corrective issues are documented.

I don't disagree with the others who have responded, I would only add that if the loan is going to be sold, many investors will require option #2 in order to buy the loan, but that certainly is not universal.