I'm trying to find in the regulation if we have a High Cost loan if there is a way to "cure" it so to speak (i.e. refunding borrower the overage)

That horse has sailed so to speak. You might try to incentivize the borrower into a free refinancing though.

We were thinking a freebie refi was what we would have to do, but were hoping for a possible reimbursement. Thank you for the information, RL!

1026.31(h)

(h) Corrections and unintentional violations. A creditor or assignee in a high-cost mortgage, as defined in � 1026.32(a), who, when acting in good faith, failed to comply with any requirement under section 129 of the Act will not be deemed to have violated such requirement if the creditor or assignee satisfies either of the following sets of conditions:

(1) (i) Within 30 days of consummation or account opening and prior to the institution of any action, the consumer is notified of or discovers the violation;

(ii) Appropriate restitution is made within a reasonable time; and

(iii) Within a reasonable time, whatever adjustments are necessary are made to the loan or credit plan to either, at the choice of the consumer:

(A) Make the loan or credit plan satisfy the requirements of 15 U.S.C. 1631-1651; or

(B) Change the terms of the loan or credit plan in a manner beneficial to the consumer so that the loan or credit plan will no longer be a high-cost mortgage.

(2) (i) Within 60 days of the creditor's discovery or receipt of notification of an unintentional violation or bona fide error and prior to the institution of any action, the consumer is notified of the compliance failure;

(ii) Appropriate restitution is made within a reasonable time; and

(iii) Within a reasonable time, whatever adjustments are necessary are made to the loan or credit plan to either, at the choice of the consumer:

(A) Make the loan or credit plan satisfy the requirements of 15 U.S.C. 1631-1651; or

(B) Change the terms of the loan or credit plan in a manner beneficial to the consumer so that the loan or credit plan will no longer be a high-cost mortgage

Thanks raitchjay - totally forgot about that buried up in 1026.31

Yes, it would have been a lot more helpful in 1026.32......that's what we all think of when we hear "HOEPA" or "high cost mortgage".