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#2260135 - 09/23/21 02:01 PM LEs and change in transfer taxes
bean2 Offline
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Joined: Apr 2019
Posts: 76
Closed loan file. The initial LE expired in September 2020 (was not locked and Closing Cost expiration date was provided) a revised LE was issued in February 2021. The borrower did not lock the loan, the revised LE contains no expiration date. It was re-issued with an increase for the tax escrow amount and reduction in points. When the borrower did lock the loan another LE was subsequently issued with the lock expiration date, however, the transfer tax fee changed on this LE ( increased ). The compliance department is requesting a cure regarding the increase in the transfer tax, the lender states there is no violation, since the LE's were not locked and had expired.
The lender is using the transfer tax fee under the locked LE as their comparison to the closing. Time frame is initial LE in September 2020, revision in Feb 2021 and lock in April 2021. This was a purchase of a home under construction. I don't see any language on the LE's stating " you may receive a revised LE at any time prior to the 60 days before consummation".
Last edited by bean2; 09/23/21 02:06 PM.
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#2260136 - 09/23/21 02:18 PM Re: LEs and change in transfer taxes bean2
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
When was an intent to proceed originally received?
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#2260182 - 09/24/21 01:11 PM Re: LEs and change in transfer taxes bean2
bean2 Offline
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Joined: Apr 2019
Posts: 76
9.15.20. Before the initial LE expiration date.

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#2260190 - 09/24/21 02:46 PM Re: LEs and change in transfer taxes bean2
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Then without a changed circumstance or the 60 days verbiage in the original LE, that set your baselines for tolerance. A tax transfer fee has nothing to do with locking the rate.
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#2260191 - 09/24/21 02:47 PM Re: LEs and change in transfer taxes bean2
bean2 Offline
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Joined: Apr 2019
Posts: 76
Thank you!

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#2260192 - 09/24/21 02:52 PM Re: LEs and change in transfer taxes bean2
Truffle Royale Offline

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New construction. Imho, increase in transfer tax might fall under information not known at time of original LE so, as long as the rate lock LE was given within three days of learning of the increase transfer tax, you could have captured both on the same LE. lots of 'ifs' in my thoughts but worth a shot.

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#2260193 - 09/24/21 02:54 PM Re: LEs and change in transfer taxes bean2
bean2 Offline
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Joined: Apr 2019
Posts: 76
Worth finding out! Thank you too!

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