Revised LE misses appraisal fee

The initial LE quotes the appraisal fee as $500. The applicant pays the fee. Then the loan amount increases, so a revised LE is sent. The revised LE omits the appraisal fee. Will we need to do a tolerance cure on the CD? Thank you!

Your baselines tolerances are set with the initial LE. You only have a good faith disclosure error on your revised LE. The secondary market might see it otherwise if you are selling the loan.

Thank you, Randy.

We see a lot of versions of this question where a cost is omitted or incorrectly reduced on a revised LE (or the initial CloD). That suggests that lenders need to pay more careful attention to those subsequent disclosures to ensure nothing has been omitted or incorrectly reduced. The quality control step needs to be taken BEFORE these documents are provided to the consumer. Auditors should be taking lending staff to task when they see any sort of pattern or practice reflecting inadequate QC.

End of "sermon," and I know that for most readers, I am "preaching" to the choir.

In the words of "Phil Esterhaus," "Let's be careful out there!"

Thank you, John. this was a "one-off" situation, so I'm confident we wont' see it again.

Love the Hill Street Blues reference John....miss that show.

One of my favs.