In the event of an actual over payment that requires a refund under TRID, I am not sure that is limited to a specific dollar amount based on the first bullet point. That says "in any amount". You might want to check with your investor.
Fannie Mae permits curtailments for the following reasons:
o The lender may apply a curtailment to refund the overpayment of fees or charges paid by the borrower, in any amount, in accordance with applicable regulatory requirements.
o If the borrower receives more cash back than is permitted for limited cash-out refinances, the lender can apply a curtailment to reduce the amount of cash back to the borrower to bring the loan into compliance with the maximum cash-back requirement. The maximum amount of the curtailment cannot exceed the lesser of $2,500 or 2% of the original loan amount for the subject loan. For example, if the borrower received $3,500 cash back at closing on a loan amount of $200,000, the lender could apply a $1,500 curtailment prior to delivery to Fannie Mae. This would result in “net cash back†to the borrower of $2,000, thus meeting Fannie Mae’s limited cash-out refinance requirement.
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