We just switched to a different company to process our secondary loans and had some loans in mid-stream. They were uploaded to the new system but at closing the comparison chart for the LE column is off just by a few dollars, so it does not exactly match to what was given in the LE. In reviewing it seems the Prepaid Interest days on the original was calculating one way and the other is off by one less day. We have 18 loans like this. Can we issue a revised LE for the ones that are not quite ready for closing so this column will match. It is not exactly a lender error and not really a tolerance issue, but it is incorrect and we want to have our disclosures accurate.

How in the world can your prepaid interest be off? That is not rocket science and a different system should not be giving you a different number. It is pure mathematics.

Check whether your system is set on 365 or 360 days a year.

Beyond that, it doesn't matter if the interest is off. It's not a comparable field so just force what you have on your LE into the new system.
fwiw, we ballpark 15 days of interest on every LE because we never know when the closing date will be for sure until right before it actually happens.

It appears it was calculated using different days. The per diem amount was correct but the old company calculated counting the day issued to first of month which resulted in an extra day being counted.

We are using a 3rd party vendor to process these and they say it's not a compliance issue and refuse to change it. So our choice is once they send us the Closing Disclosure, re-input everything in our usual LOS to have recreate it with the a correct matching column on the Closing Disclosure for the LE section or issue a revised LE, but unsure of how to explain the re-issue when it's just strange to try to explain now.

Why does your estimate between the last LE and the final CD have to match? That is why it is called a comparison chart. But someone has to be wrong in their calculations - either you or your new vendor - all systems should give you the same per diem - especially on secondary market loans.

^^^Sounds correct to me. Weren't you collecting interest for the day of closing?
Besides, as Randy pointed out, it's a COMPARISON table not a match it up exactly table.

The new vendor should do what you tell them to do unless they can prove via citation that you are doing it incorrectly because ultimately YOUR BANK is responsible for what's on the docs, not any third party vendor.

So you are saying the new company does not include the day of projected funding in their per diem charges?

I read all of this thread again. I get stuck on this statement:

"The per diem amount was correct but the old company calculated counting the day issued to first of month which resulted in an extra day being counted."

I guess I am not sure what the "day issued" has to do with the estimated per diem on an LE. The estimated per diem has to be based on a good faith estimate of the loan funding date and it has nothing to due with the date the LE is issued.

While it is true that odd-days' interest is not going to trigger a lender credit for a violation under 1026.19(e)(3), there is still a requirement that the estimate of odd-days' interest is in good faith based on the best info available to the lender at the time the estimate is provided. That means that, to the extent that the lender can estimate the closing date for the loan (based on the purchase agreement and knowledge of the time needed to process the application, etc.), you have to use that info in the LE estimate of odd-days' interest. Consistently assuming 15 days' interest doesn't comply with the requirement and could result in a citation in an examination report.

Ok. Let's see if I can clarify. there is 3 days until the end of the month. Under F Prepaids, our old company would count the 1st day of the month also so that section would show say 13.92 per day for 4 days. which is 55.68. The new company uploaded our data into their system and it showed that information calculated 13.92 at 3 days which is 41.76 which they did not produce a new LE. The LE we issued to customer totals the total closing costs as $4,943. So when the Closing Disclosure was produced, it shows the total closing costs in the Loan Estimate column as $4,929.08. This comparison chart in the column does not match what we gave to the customer.

Then that is a disclosure violation.

Did your old system do that when it came time for the CD also? If you collected odd days per diem interest for the 1st of the month on your closings for all of your previous loans, you are likely looking at some hefty restitution.

No it was correct on all of our CD just not the LE. The only thing I can figure out is that it was set up weird under their Admin on LOS for just the application side while the closing phase was correct. Not a big deal when the LE is just an estimate and using the same company it was consistent. It's more work for our processors but right now for these handful of loans that were in midstream, we are having them input all the information on our system to get that column to be consistent with the LE to the CD. So basically this company is preparing our closing package but we have to remove their CD and do our own.