Skip to content
BOL Conferences
Thread Options
#1611256 - 09/30/11 05:59 PM Violation. Need Help
1127Tony Offline
Junior Member
Joined: Jan 2010
Posts: 31
This was just brought to my attention on a loan that is going to close today. This is a purchase transaction in Colorado. The GFE provided to the borrower listed the transfer tax amount as $1,000, however the closing agent is saying the transfer tax is substantial larger. This appears to be an error when the GFE was disclosed. I do not see anyway around this. Does anyone now of how this can not be a 0% tolerance violation?

Return to Top
RESPA
#1611261 - 09/30/11 06:03 PM Re: Violation. Need Help 1127Tony
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Quote:
This appears to be an error when the GFE was disclosed.


Assuming nothing changed to affect the transfer tax an error on the bank's part in quoting a charge is not a changed circumstance. It appears you will have to cure the tolerance violation.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1611262 - 09/30/11 06:03 PM Re: Violation. Need Help 1127Tony
Law78 Offline
Junior Member
Joined: Oct 2010
Posts: 38
Nope - It was something that happened to us quite regularly just after the effective date of RESPA 2010. If you didnt diclose it properly you have to take a hit on the fee.

Return to Top
#1611264 - 09/30/11 06:08 PM Re: Violation. Need Help Law78
1127Tony Offline
Junior Member
Joined: Jan 2010
Posts: 31
That's how I see it and was just hoping that I missed something. I appreciate the quick responses.

Return to Top
#1611313 - 09/30/11 06:44 PM Re: Violation. Need Help 1127Tony
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
It's not a zero tolerance violation tho, it's a 10% one.
As Rosanne Rosanna Danna would say 'never mind'.

Sorry...Friday brain.
Last edited by Truffle Royale; 09/30/11 08:17 PM.
Return to Top
#1611394 - 09/30/11 07:50 PM Re: Violation. Need Help Truffle Royale
Jafo Offline
Gold Star
Jafo
Joined: Apr 2008
Posts: 328
State of Confusion
Tuffle, after reading this I am confused. I thought that tranfer taxes were a zero tolerance? Am I missing something?
_________________________
A common mistake people make designing something completely foolproof is to underestimate the ingenuity of complete fools.

Return to Top
#1611424 - 09/30/11 08:20 PM Re: Violation. Need Help Jafo
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Transfer taxes are subject to a 0% tolerance. Refer to 3500.7(e)(1)(iv).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  QCL