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#2181950 - 06/15/18 04:30 PM Post-consummation CD for clerical error, > 60 days
Anonymous
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Hi all,

I tried searching the forum for this but was unsuccessful (probably user error, as it seems like it would be a common/basic question... but I digress).

We have an issue where we discovered through post-closing QC that we failed to preface a title charge with, "Title -" on the Closing Disclosure.

However, since we discovered this > 60 days after consummation and it is a clerical error, we are having an internal discussion about whether a corrected CD is required, since §1026.19(f)(2)(iv) outlines that in order to cure this violation, a corrected PCCD must be issued to the borrower within 60 days.

My thought is that the corrected CD should still be issued, as minor as that error seems to be.

I feel like I've read some type of guidance before that was more along the lines of, "Within 60 days, or when the error is discovered, whichever is earlier," but I can't find that verbiage. Does anyone know if such verbiage exists related to any type of post-consummation cures?

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#2181952 - 06/15/18 04:35 PM Re: Post-consummation CD for clerical error, > 60 days [Re: Anonymous]
Anonymous
Unregistered

Please disregard... does not get much more black and white than this:

OFFICIAL INTERPRETATION TO 19(f)(2)(iv) HIDE
19(f)(2)(iv) Changes due to clerical errors.
REQUIREMENTS.
Section 1026.19(f)(2)(iv) requires the creditor to deliver or place in the mail corrected disclosures if the disclosures provided pursuant to § 1026.19(f)(1)(i) contain non-numeric clerical errors.

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#2182143 - 06/18/18 06:28 PM Re: Post-consummation CD for clerical error, > 60 days [Re: Anonymous]
John Burnett Offline
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John Burnett
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Cape Cod
... and, if you read through to the end of that comment, this corrective disclosure must be placed in the mail or delivered no later than 60 days after consummation. That's what you have to do to correct the clerical error and eliminate that violation. So you can still provide the corrective disclosure after 60 days, but the violation won't go away.

There are those who have suggested that the corrective CD go out anyhow, to evidence the fact that the creditor did catch the error, albeit late. I don't any argument with that position other than it could cause unwarranted confusion for the consumer.
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#2245043 - 11/03/20 06:44 PM Re: Post-consummation CD for clerical error, > 60 days [Re: Anonymous]
Truffle Royale Offline

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Posts: 17,251
Resurrecting this thread to ask: Would a wrong issue date on the CD delivered three days prior to closing be considered a clerical error?

The print date at the bottom of the page shows the correct issue date.
The borrower signed the CD as received on the correct issue date.
Only page one has the closing date as the issue date which is incorrect.

Getting push back from Auditor claiming money should be refunded to the borrower based on the wrong issue date.

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#2245044 - 11/03/20 06:53 PM Re: Post-consummation CD for clerical error, > 60 days [Re: Anonymous]
rlcarey Offline
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rlcarey
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Galveston, TX
Corrected via a post-closing CD - no not really. The issue date is a required disclosure: An error is considered clerical if it does not affect a numerical disclosure and does not affect requirements imposed by § 1026.19(e) or (f).

What is the auditor basing a refund recommendation on? Refunds are based on tolerance violations only and not on timing or other errors.
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#2245045 - 11/03/20 07:01 PM Re: Post-consummation CD for clerical error, > 60 days [Re: Anonymous]
Truffle Royale Offline

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Posts: 17,251
Thanks, Randy.
Am I understanding you correctly then that this is a non-correctable violatoin because we're over 60 days past closing?
And would this be considered corrected by the CD delivered at the closing that had the correct dates?

Looking forward to 'seeing' you tomorrow at Triage!

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#2245047 - 11/03/20 07:13 PM Re: Post-consummation CD for clerical error, > 60 days [Re: Anonymous]
rlcarey Offline
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rlcarey
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Galveston, TX
Over 60 days or not, I would not consider a wrong issue date as a clerical error. If you are delivering a new CD at closing, then it would have an updated issue date as of the closing date. That would not correct the original violation.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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