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#2237998 - 06/12/20 03:46 PM Closing Disclosure revisions
Monica-in-TX Offline
Junior Member
Joined: Jul 2013
Posts: 25
Good morning, y'all!

Our bank closed a construction loan at the end of February (2/27/20) and construction has begun. At the end of April, the title company's escrow agent reached out to the bank and asked us to do a revision to the Closing Disclosure. She was not entirely sure what she needed us to do and by the time she got back to us, it was May. However, the revision was to remove the OTP surrender in Section H. (For reference, what was in Section H was a $2 Owner's Policy Guaranty fee and -$211 in OTP surrender. The amounts that were on the FINAL CD were given to us by this particular escrow agent prior to closing and the CD showed these items in Section H on the final CD which she says she balanced to.) She is coming back again now and wanting us to give her another revision to add $209 to the CD in OTP surrender. So far the customer has not received any revised CDs because the escrow agent is telling us the one done in April/May was incorrect.

Since this seems to be a title company error and we are past our 30 and 60 day error revision times for a CD, I'm not sure where we go from here. Do we revise the CD? This changes the bottom line for the customer and I don't feel as if the bank should be changing the CD when the title company has made an error. There's a reason why there are 30 and 60 day error revision time periods and if you don't find your error within that time, it's not the customer's fault.

Thank you for any help or opinions!
Monica

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TRID - TILA/RESPA Integrated Disclosures Rule
#2238002 - 06/12/20 04:00 PM Re: Closing Disclosure revisions Monica-in-TX
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,931
Galveston, TX
I am not following. The original closing disclosure included a $211 OTP surrender credit to the borrower from the title company.

You say they now want to add $209 to the surrender credit. Does that mean they are increasing the credit or reducing the credit?

If they are trying to reduce the credit, then 3 months later I would be telling them they just need to eat it as you are not approaching your borrower to pay the title company any more money this far down the road.
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#2238004 - 06/12/20 04:10 PM Re: Closing Disclosure revisions Monica-in-TX
Monica-in-TX Offline
Junior Member
Joined: Jul 2013
Posts: 25
The original CD showed -211. First they wanted us to remove that from Section H (which made Section H empty) and now they want us to add 209 to the section and remove the fee.

It doesn't make sense to us that the original CD was a negative and now she wants to ADD money. This would be coming from the borrower (in theory) and doesn't make sense to us. If she wants us to change it from -211 to -209 and the borrower gets $2 back, we're cool with that, but she insists that it should be a positive number. My feeling is that if she wants money from the borrower, that ship has sailed when she said the CD balanced back in February.

She keeps arguing and I was certain I was going crazy. It SHOULD be a negative number for a surrender. And it makes sense to remove the fee and change the amount to 209 but still negative. We have no problem with that. But to ADD 209 means she wants money from the borrower and it's too late.

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#2238005 - 06/12/20 04:15 PM Re: Closing Disclosure revisions Monica-in-TX
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,931
Galveston, TX
Sounds like a title employee that made a mistake and they are trying to cover their butts. Like a lender error, you don't get to go back 3 months later and demand more money from a customer.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2238006 - 06/12/20 04:19 PM Re: Closing Disclosure revisions Monica-in-TX
Monica-in-TX Offline
Junior Member
Joined: Jul 2013
Posts: 25
Yes, I felt the same way--an error was made and now she wants to fix it. Thank you for your thoughts on the matter. smile

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