I know how non-numerical clerical errors are addressed, but can't seem to locate anything related to a numerical error on the CD for an item that has unlimited tolerance. For example, an escrow deposit was disclosed correctly on the LE and then inadvertently the initial escrow payment at closing on the CD (Section G) disclosed a larger amount than was actually needed.

First question - If the amounts actually collected were correct and just the amount for escrow payment was disclosed incorrectly on the CD how would this be handled. This doesn't fall under the non-numerical provision since it is obviously a numerical error, but it also isn't a tolerance item. Complete a revised CD just as you would with a non-numerical clerical error within the same 60 day window or would you just leave it and chalk it up to a technical error that cannot be corrected?

Second question - Assume in the same scenario that the incorrect amount were collected for escrow and disclosed. Would you then issue a revised CD showing the proper escrow payment collected at closing and also a cure for the amount collected in excess?

"If the amounts actually collected were correct and just the amount for escrow payment was disclosed incorrectly on the CD how would this be handled. "

How did your cash to close work out if you disclosed the escrow payment amount wrong?

Good point. In the true example the second question is what actually occurred...I was just thinking of a "what if" scenario and didn't even think about the cash to close. So, if the incorrect amount were collected and disclosed for escrow you would issue a revised CD showing the proper escrow payment that should have been disclosed and a cure for the amount collected in excess, correct?

Yes.

"Cure" might not be the right term here, since this isn't a good-faith estimate violation covered by 1026.19(e)(3)(i) or (ii). Instead, I think you simply refund the over-charge, and because that changes the amount for that charge actually paid by the borrower, you provide an accurate closing disclosure. But I am splitting hairs on the definition of "cure," I realize.

If the amount disclosed was lower than needed, then we would provide a new Closing Disclosure, an Initial Escrow Account Disclosure and give the borrower the option of paying the balance now or having an escrow shortage at analysis time, correct?