We have a secondary market loan that requires PMI. The premium is escrowed and was disclosed on the Rate Lock LE. However, when issuing the CD 3 days prior to close, the PMI was mistakenly left off. The Loan Assistant realized it was missed and disclosed it on the final CD.

This was discovered in a post-closing review and the APR is out of tolerance.

We realize this was a bank error, but how do we correct this after the loan has already closed?

If this an investor loan - it is going to come back if it is.

There is no cure.

Thanks for your quick response, Randy. This is a new situation for us, so we're in the "oh cr@p, now what" phase.

You mentioned there is no cure, but if it does come back to us, would we have to pay the PMI premiums for our mistake? Or just leave it on the books as-is knowing we have a violation?

It appears you have a disclosure violation and not a curable tolerance violation. As such, you are open to any civil liabilities and potential enforcement criticism. If the loan was subject to rescission, that most likely is still open too.