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#2231175 - 02/18/20 05:07 PM Lender Credit on CD
mdog76 Offline
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Has anyone been told that an "L" or "LC" needs go on a specific title charge line item on the CD if a lender credit is given for a tolerance violation to help the customer clearly identify an lender credit? Example: Title - Lenders Title Policy LC
Last edited by mdog76; 02/18/20 05:08 PM.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2231180 - 02/18/20 05:36 PM Re: Lender Credit on CD mdog76
rlcarey Offline
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No - there is no provision for that in the regulations.
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#2231182 - 02/18/20 05:45 PM Re: Lender Credit on CD mdog76
mdog76 Offline
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Its going to be an examiner recommendation for us.

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#2231186 - 02/18/20 06:08 PM Re: Lender Credit on CD mdog76
rlcarey Offline
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Ask them for the regulatory citation for the recommendation. Tell them you would like a written justification for the recommendation from the field or district office. They are making up rules.
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#2231191 - 02/18/20 06:34 PM Re: Lender Credit on CD mdog76
Inspector Offline
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That is a really bizarre recommendation. I get the "idea" behind it but, as Carey already pointed out, its not contemplated in the regulation and isn't something that is going to add clarity for consumers.

Is this a formal recommendation in your report? If so I would push back. If its not then disagree, or "I will think about it." Examiners are as guilty as the next person in making uninformed comments or suggestions that aren't really meant to be real recommendations.
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#2231192 - 02/18/20 06:35 PM Re: Lender Credit on CD mdog76
Truffle Royale Offline

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What examiner? I've got Feds coming in a couple months and I want to be prepared.

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#2231196 - 02/18/20 06:57 PM Re: Lender Credit on CD mdog76
mdog76 Offline
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We haven't had an exit yet but I'm pretty sure something will be said about it. We are FDIC regulated.

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#2231199 - 02/18/20 07:15 PM Re: Lender Credit on CD mdog76
John Burnett Offline
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Comment 38(f)-1:
"38(f) Closing cost details; loan costs.
1. Lender-paid charges and specific lender credits. Charges that are designated as paid by others under § 1026.38(f) and (g), below, may include the letter “L” in parentheses, i.e. “(L),” to the left of the amount in the column to designate those charges paid by the creditor pursuant to the legal obligation between the creditor and consumer."

A key word in that comment is "may." It's not a requirement. And its use is not restricted to specific credits made to cure tolerance violations.
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#2231203 - 02/18/20 07:34 PM Re: Lender Credit on CD mdog76
Truffle Royale Offline

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John, is a tolerance violation, which is what mdog said the credit was for, the same as "... those charges paid by the creditor pursuant to the legal obligation between the creditor and consumer." Does TRID compliance constitute a legal obligation between creditor and consumer?

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#2231209 - 02/18/20 07:48 PM Re: Lender Credit on CD mdog76
rlcarey Offline
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Yes, but that is only if you include the amount in the "Paid by Others" column and not if you include the lender cure in Section J, which I believe is what they saying.
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