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#2270735 - 05/20/22 07:24 PM Wrong line item in Section A. of LE
JMS Offline
New Poster
Joined: May 2021
Posts: 8
Hello,
We have a situation where the rate extension fee was initially disclosed in Section A. (Origination Charges) on line item 3.,right beneath line item 2.- Origination Fee.

The amount of the rate lock extension is .375% and it should have been placed on line item #1 as a percentage of Loan Amount (points). In both scenarios, the charge remains in section A. Origination Charges, and the amount of the fee isn't changing.

My concern is the initial LE shows zero points and revising the LE so the fee is on the correct line item will indicate the borrower is paying points. Can this be moved and revised as a technical error?

Thank you.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2270737 - 05/20/22 07:52 PM Re: Wrong line item in Section A. of LE JMS
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
"The amount of the rate lock extension is .375% and it should have been placed on line item #1 as a percentage of Loan Amount (points)."

That is not a true statement. A rate lock extension fee is not a bona fide point. A bona fide point has to buy down the interest rate.
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#2270739 - 05/20/22 08:10 PM Re: Wrong line item in Section A. of LE rlcarey
JMS Offline
New Poster
Joined: May 2021
Posts: 8
Thank you for your guidance!

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