Loan Estimate Software Error

Discovered that a fee that should be in the origination charge section is being disclosed in the 10% section opf the LE. This error has been corrected for the future, but occurred on 3 loans before it was discovered. One of these loans is set to close. Do we have to move it on the CD to the proper place as zero tol (and thus eat the fee) or leave it as is as technically in the wrong category. The fee amount will not change, so it doesn't pad the 10% category.

What is the fee for, if I may ask??

Draw fee

Looks like they are going to get some free draws.

That's what I was afraid of, but I told the loan dept I would ask

Be glad, very glad, that you caught this error so quickly.

Why is a draw fee an origination charge? Is this a construction loan? I am freaking out here!

If they charge the fees upfront, they would be origination charges.

To whom are the construction draw fees being paid?

If paid to the financial institution they belong in Section A.

If paid to the appraiser they belong in Section B.

They are paid to the bank, thus need to be in Section A

In my case, the bank collects them but they are payable to the title company. This is a service they cannot shop for. Are we correct to disclose these under Section B?

If they are not allowed to shop, it is a zero tolerance item and goes in Sectionn B. If it were paid to the bank, it would go in A.

OK- I freaked out there a bit. Thanks.