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#2245896 - 11/25/20 06:54 PM 30 days or 60 days to correct Closing Disclosure
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Joined: Nov 2008
Posts: 1,049
In the mountains
Construction only loan. The Estimated Taxes, Insurance & Assessments on page 1 of the CD included the new estimated property tax based on the estimated value of the improvements and land. The processor accidently also included the property tax on the land by itself. Therefore the amount was disclosed as $389.17 a month when it should have been $373.67. Nothing else disclosed on the CD was incorrect.

A corrected CD was mailed with the correct amount for the Estimated Taxes, Insurance & Assessments. Would this corrected CD fall under the 30 calendar day timing or 60 calendar day timing?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2245897 - 11/25/20 06:55 PM Re: 30 days or 60 days to correct Closing Disclosure Likes to Comply
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Diamond Poster
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In the mountains
The error was found during a post consummation review.
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#2245902 - 11/25/20 07:39 PM Re: 30 days or 60 days to correct Closing Disclosure Likes to Comply
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,557
Cape Cod
The 30-day correction period under 1026.19(f)(2)(iii) applies when there is a post-consummation event that causes the disclosures to become inaccurate, resulting in a change to an amount actually paid by the consumer.

The 60-day correction period under 1026.19(f)(2)(iv) only involves changes due to non-numeric clerical errors.

The 60-day correction period under 1026.19(f)(2)(v) only relates to tolerance overcharges identified after closing that weren't resolved in the CD issued at or before the closing.

It appears your situation does not fit either of the last two criteria, so that leaves the 30-day provision in 1026.19(f)(2)(iii). But there's no post-closing event here. What you have is an disclosure violation error that doesn't appear to be curable. You can, however, send a corrected CD with a letter of explanation. Since the mistake didn't affect amounts paid by the customer, and there appears to be no consumer harm, I'd consider it an isolated incident.

Did the error in those numbers get carried over to the escrow section on page 4 of the CD?
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#2245905 - 11/25/20 08:11 PM Re: 30 days or 60 days to correct Closing Disclosure Likes to Comply
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Yes, it did. I didn't think about it affecting that the 'No Escrow" box on page 4.
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