Hello--

How are you all handing a verification of employment fee that is not determined until the loan is in underwriting? We are having a higher instance of loans where we need a written VOE, but it is not known until the loan is being underwritten. Until this point, we have no idea that one is needed nor do we know if a fee from the employer will be applicable.

My interpretation of TRID is that this is a zero tolerance item and the discovery of the fee is not enough to trigger redisclosure under change in circumstances. However, our lending department feels that it is and has valid points-- we don't know that the written VOE is even required at the time the LE is issued.

How do you all handle this? Zero tolerance, no changed circumstances? Or do you redisclose on the LE and consider this information that could not have been known at the time the LE was originally issued, and therefore valid COC?

We run into this regularly in our footprint with various employers using various services. Plus we have an automated LE generator on our online application portal.

In short, we put it on each loan estimate and then if we do not need it, we remove it prior to closing if there is another LE issued and we figure it out based on the employer or it disappears on the Closing Disclosure.

Our exam group and the like has indicated we are still in good faith because we may not know until the end that it is needed.

We keep an eye on the services that charge for these and put the maximum charge we have received in the last (x) months as our LE amount.

We handle exactly as Tater does.

Would it not be possible to include the VOE fee for all LE's and then have it drop off if not needed?

Man, I walked away to participate in some holiday fun and came back to comment and it looks like Tater and RaitchJay already posted.

Original Anon here-- my recommendation is to include the highest fee that we know of, but that is not what our lending department wants to do. They want to say its a valid COC and issue a revised LE.

I have recommended the increased fee on LE, but that answer doesn't seem to be acceptable.

I mean, either way works IMO.

I would point out to them that they are creating more work for themselves this way, creating more risk (the revised has to be issued within 3 days of learning of the VOE charge, or they eat it), and a reminder that a new LE for this COC isn't a free pass to pickup other fees they may have missed.

I agree with JJ....either way works but their way is more challenging. I would just add--we never KNOW whether the VOE fee will be charged to us or not....but we KNOW it MIGHT....so i think disclosing it from the outset is MORE correct...if that's a thing.