10% tolerance violation

Posted By: newyork

10% tolerance violation - 07/13/16 01:23 PM

We seem to have a tolerance violation on the 10% tolerance bucket on one of our closing disclosures we are reviewing. the customer has not received the closing disclosure yet. at what time do we cure the overage? and do we show the cure on the closing disclosure the customer is going to receive 3 days prior to consuming the loan? and how do we show the cure on the closing disclosure?
Posted By: PCBDebbie, CRCM

Re: 10% tolerance violation - 07/13/16 03:35 PM

If you know about the tolerance violation prior to closing then you would correct it on the CD at that point. We cure these violations by listing the amount of the overage as lender paid in the paid by others column. You can also choose to show it as a general lender credit.
Posted By: Iowa Compliance Gal

Re: 10% tolerance violation - 07/13/16 03:44 PM

^^Correction to the CD same as above....only difference is our LOS automatically shows it in section J as a lender credit for exceeding legal limit.