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#2263316 - 12/08/21 02:24 PM LOS is down & disclosures are due
Banker K, CRCM Offline
Gold Star
Joined: Jan 2010
Posts: 293
Oklahoma
Hi all. Our in house lending team ran into a big issue yesterday. I would like to know what your thoughts are should this happen again.

Compliance One Mortgage apparently crashed around 2am yesterday morning. I am unsure if it's back up now (I have an email in to the processors).

2 LEs were due out yesterday, along with 2 CloDs (in order for the customers to close on time as planned). One of those closings was a purchase and the seller would not budge on the closing date. I think this would meet the bonafide financial emergency for the customer to waive the 3 day waiting to close, but am not 100% sure.

The processors' plan was to just issue the disclosures late (hopefully today?) and document the file showing the outage of the LOS. I can't really say "that's okay" but I am unsure what they should do.

Thoughts?
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Compliance - A Painful Addiction

All comments are mine & should not be taken as legal advice.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2263318 - 12/08/21 02:29 PM Re: LOS is down & disclosures are due Banker K, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
So - what happened to your disaster recovery plan? Why do you need an LOS to create a Loan Estimate or Closing Disclosure? Sounds like very poor planning on the bank's part.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2263319 - 12/08/21 02:31 PM Re: LOS is down & disclosures are due Banker K, CRCM
Banker K, CRCM Offline
Gold Star
Joined: Jan 2010
Posts: 293
Oklahoma
I'll pass that along but do you have suggestions?
_________________________
Compliance - A Painful Addiction

All comments are mine & should not be taken as legal advice.

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#2263320 - 12/08/21 02:32 PM Re: LOS is down & disclosures are due Banker K, CRCM
Banker K, CRCM Offline
Gold Star
Joined: Jan 2010
Posts: 293
Oklahoma
I'm sure they could get the loan fees disclosed and possibly the loan amount typed manually on a blank form, but calculating the payments, and APR, and all the other items from page 5 - geeze. That would be very difficult and 99% sure it would not be accurate.
_________________________
Compliance - A Painful Addiction

All comments are mine & should not be taken as legal advice.

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#2263321 - 12/08/21 02:33 PM Re: LOS is down & disclosures are due Banker K, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
A bank error is not a financial emergency for the customer. You will have to live with the violations on the Loan Estimates. You have a choice on the Closing Disclosure - what you do will be a business decision.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2263322 - 12/08/21 02:34 PM Re: LOS is down & disclosures are due Banker K, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Originally Posted by Banker K, CRCM
I'm sure they could get the loan fees disclosed and possibly the loan amount typed manually on a blank form, but calculating the payments, and APR, and all the other items from page 5 - geeze. That would be very difficult and 99% sure it would not be accurate.

All that should be addressed in your disaster recovery plan.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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