ILR Fee on CD

Hello,

if we did not disclose an ILR fee on Loan Estimate and when we received closing fees from title company it has a ILR fee which we were unaware of is this a tolerance issue and/or reimbursement. We have not yet closed, will the bank be responsible for this fee?

thanks

Based on what you've provided, you'll be responsible for the fee unless you can tie it to a legitimate changed circumstance and re-disclose within the required 3-day timeframe.

no we didn't have a "changed circumstance" it was just an exception item for deletion in regards to survey coverage. So therefore we eat the fee correct?

You wouldn't be responsible if the fee was specific to and charged only by a title company your borrower "shopped" for (not the provider on your shopping list). In other words if they had chosen the title company listed on your shopping list, this fee would not have been assessed.

Correct, depending on the tolerance (0% or 10%).

well we did allow them to shop but they chose our provided. There was a miscommunication between processor and loan officer that the item was required to be cleared which it was not. Therefore borrower was not informed about the fee, so in this case do we have to pay it all or does it fall within 10% bucket even if not disclosed on LE?

it was just an exception item for deletion in regards to survey coverage.

Was this to delete an exception item that came up in the title exam...if so and it is something you would have had no knowledge of when the LE was issued then I think you may have an argument for a changed circumstance. However, you only have 3 business days from when you found out about the exception to issue a revised LE to reset the baseline.

It boils down should you have known about the fee when the LE was issued.

it was but we don't require survey protection it's up to the borrower to purchase however we did not give them that option and just ordered it anyways and it's way more than three business days that we knew about the charge unfortunately