I am looking to get some help with determining if a tolerance cure is due. The loan was originated prior to the mandatory compliance date with TRID 2.0 rules.

Upon loan approval and prior to issuance of the initial CD, the lender was notified the borrower shopped and picked his own provider. Instead of itemizing the fees when disclosing the initial CD, the lender lumped all escrow related itemized fees into the "Escrow Fee" and all title related fees into the "Title-Lender's Title Insurance" fee.These "lumped" fees carried through and were disclosed to on the CD at the closing too. No post-consummation CD was issued at this point. The escrow agent did issue a final master closing statement, not a CD, that itemized these escrow and title fees and ties to the "lumped fees" on the closing disclosure received by the borrower at closing.

For starters, I know the lender should issue a post-consummation CD within 60 days of the error identification that itemizes all escrow and title fees with the actual charge amounts, and reflects itemized APR fees as lender paid on the post-consummation CD if the fee in whole or in part contributes to an underdisclosed finance charge when compared to the finance charge CD received by the borrower at closing.

This is where I am stuck...

Does the lender need to make any tolerance cures for any of the itemized escrow and title fees that were not disclosed on the CD received by the borrower at closing and reflected as borrower paid on the post consummation CD?

I was also wondering about time frame to make the cure. If it is beyond 60 days from identification of the error, should we still make the correction? My inclination is yes because a regulator would view it is the "right thing to do" and in the borrower's best interest. Any other considerations you think I should make?

Any insight any of you may have on my questions or any aspect I may have overlooked is much appreciated!

If they shopped there would be no TRID tolerance cure. I would be focusing on curing any under disclosed finance charges. When you cure that issue, send them a check, if required - you could itemize the charges on a revised CD at that time. You are outside any cure timeframe for the error, so this would be a business decision.

Thank you for clarifying and validating the approach to resolve the issue, I truly appreciate it. Your comments and opinions on various topics are very helpful and a blessing to the bankers online community.

I have a follow up to this though. In a TRID 2.0 world, it is not exactly clear to me that BIRA would apply to disclosure of Borrower Shopped Services. So as a follow up question, what impact would the TRID 2.0 rules, specifically BIRA have on a possible tolerance cure?

I am not familiar with the acronym BIRA. Can you explain in more detail?

BIRA = "Best Information Reasonably Available"

You mean because they lumped the fees together when they should have been itemized? I guess if this was a one-off situation, as long as the lump-sum roughly equated to the charges listed on the LE and this was a portfolio loan, I would probably document the disclosure error, fix it moving forward and move on from a TRID perspective.