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#2228095 - 12/31/19 02:23 PM Valid CIC -missing 3 day timing - consequences?
Gertie Offline
Member
Joined: Jan 2016
Posts: 61
I think we got off track somewhere along the line regarding tolerance cures & missing the 3 days to redisclose when there is a valid change in circumstance.

Assume we had a valid change in circumstance (cost of appraisal) because the property was different than the applicant told us. We fail to redisclose within 3 days of the appraiser notifying us; we redisclose as soon as we realize there was a valid change (left hand not talking to the right hand), do we have a tolerance cure? I understand we have a technical violation due to timing, but are we required to eat the difference in the cost of appraisal?

I am receiving opposing answers from our compliance advisory resources. Thanks

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TRID - TILA/RESPA Integrated Disclosures Rule
#2228098 - 12/31/19 03:24 PM Re: Valid CIC -missing 3 day timing - consequences? Gertie
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
You missed your window to reset your tolerance baseline. You will need to cure.

Official Interpretation

19(e)(4) Provision and receipt of revised disclosures.

19(e)(4)(i) General rule.

1. Three-business-day requirement. Section 1026.19(e)(4)(i) provides that, subject to the requirements of § 1026.19(e)(4)(ii), if a creditor uses a revised estimate pursuant to § 1026.19(e)(3)(iv) for the purpose of determining good faith under § 1026.19(e)(3)(i) and (ii), the creditor shall provide a revised version of the disclosures required under § 1026.19(e)(1)(i) or the disclosures required under § 1026.19(f)(1)(i) (including any corrected disclosures provided under § 1026.19(f)(2)(i) or (ii)) reflecting the revised estimate within three business days of receiving information sufficient to establish that one of the reasons for revision provided under § 1026.19(e)(3)(iv)(A) through (F) has occurred.
Last edited by rlcarey; 12/31/19 03:27 PM.
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#2228100 - 12/31/19 03:30 PM Re: Valid CIC -missing 3 day timing - consequences? Gertie
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,341
Yes, you are responsible for paying the difference because you didn't tell the borrower it would cost more within the alloted time frame.
John Burnett explains how to only have to pay the difference and not double cure it here.

Whatever compliance advisory resource is telling you differently needs to go bone up on TRID.

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#2228101 - 12/31/19 04:17 PM Re: Valid CIC -missing 3 day timing - consequences? Gertie
Gertie Offline
Member
Joined: Jan 2016
Posts: 61
Thanks for the help!

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#2228332 - 01/06/20 09:32 PM Re: Valid CIC -missing 3 day timing - consequences? Gertie
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,598
Cape Cod
The key state in your scenario is the date the appraiser notified you of the increased cost or that the appraisal will be of Property Type B instead of Property Type A and you should be aware that means a changed cost. And "you" means the bank, whether the person notified is in your processing area or the lending officer, etc.
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