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#2206657 - 02/21/19 01:34 AM LE
theloanbug Offline
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Joined: Sep 2005
Posts: 746
LE was issued unaware of earnest money. Can the earnest money be listed on the initial CD without problems?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2206659 - 02/21/19 11:47 AM Re: LE theloanbug
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Sure you can. Earnest money is just a seller credit and would not be subject to any tolerance issues. Many times an initial LE is issued without knowing about any earnest money deposit as the lender might not receive the purchase contract until sometime later in the application process. Once you have that information, it would have to be disclosed on the next LE/CD disclosure issued as it then becomes part of the best information available to the lender. If the initial CD is the next disclosure issued after gaining knowledge of the earnest money deposit, you have no problem.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2206667 - 02/21/19 01:28 PM Re: LE theloanbug
theloanbug Offline
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Joined: Sep 2005
Posts: 746
That is exactly what happened. Thank you.

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#2206669 - 02/21/19 01:39 PM Re: LE theloanbug
theloanbug Offline
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Joined: Sep 2005
Posts: 746
Just making sure this would show up on the closing disclosure in section L on the borrowers side, correct?

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#2206676 - 02/21/19 02:12 PM Re: LE theloanbug
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Correct. Section L Line 1

Oh - I referenced it as seller credit in my earlier post. It is a deposit. I guess I needed more coffee.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2206677 - 02/21/19 02:17 PM Re: LE theloanbug
theloanbug Offline
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Joined: Sep 2005
Posts: 746
No problem. Thanks for all your help.

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