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#2249188 - 02/12/21 06:55 PM Underwriting error - Loan docs signed
CMSIngenue Offline
100 Club
Joined: Jan 2013
Posts: 136
We have a situation where UW error on the L/A amount calc would cause loan to not meet investor guidelines (wrong loan amount) and loan is in the rescission period. Can the lender refuse to fund the loan? What are the potential repercussions?

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Lending Compliance
#2249207 - 02/12/21 09:55 PM Re: Underwriting error - Loan docs signed CMSIngenue
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,287
Bloomington, IN
Can the lender refuse to fund the loan?

What legal basis does the bank think they have to breach the contract? Sounds like you just booked a portfolio loan.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2249211 - 02/13/21 12:05 AM Re: Underwriting error - Loan docs signed CMSIngenue
CMSIngenue Offline
100 Club
Joined: Jan 2013
Posts: 136
Thank you confirming.

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