In search for further guidance on compliance for delivery of a Closing Disclosure (CD) by way of email (with a borrower's E-Sign consent) we have varying differences in the interpretation of the word "Receipt".
It has been our department's practice to deliver the CD within no less than 3-business days prior to closing. Documentation to evidence delivery has been by including a printed copy of 1) email showing our department's delivery of the CD to the borrower by way of email, and/or 2) a printout showing the "Arrival Date" of the email/attachments to the borrower.
Some have interpreted the "Receipt" rule as evidence the email and attachment(s) was "OPENED". Are we in violation if a loan is scheduled to close on a Monday and the borrower did not “OPEN” the email until the 2nd business day (Thursday) prior to closing – even though we have evidence to show “ARRIVAL” of our CD on or before the 3rd business day prior to closing?
If you have changes to a loan product or loan amount, etc. one day prior to the initial closing disclosure being issued, can you use the initial CD to
disclose the changes or do you have to reissue the loan estimate and restart the clock, or is there another solution?
I have a question regarding modification fees on our construction-perm loans. If additional fees are incurred at modification (Appraisal fee,
recording fees, title fees, etc.) and were not disclosed on the loan estimate or closing disclosure, are we able to collect and charge them or
would this be a TRID tolerance issue?
When disclosing the payoff of an existing lien on the collateral property, should the amount listed on page 3 of the Closing Disclosure just show the
principal balance, or should it show the principal balance, plus the interest due?
I do not believe the reg goes into detail on what the amounts listed should be. My thought is we would need to list the amount that would fully pay off
that existing lien (principal, interest, late charges, etc. ). There have been discussions about not capitalizing off interest, but as long as we are not financing the
interest due into the new loan amount, I do not see how we would be capitalizing off previous interest.
In addition, if we list the full payoff amount, would we need to list just one payoff amount, or would we need to list
separate lines for principal, interest and late charges on the Closing Disclosure? I believe either way would be okay, but my thoughts are we would just need to list one line item with the full amount.
If the buyer is being charged by the attorney to prepare the purchase contract, would we reflect that in Section C or Section H?
Also, would the fee description have "Title" in front of it?
May a lender offer a gift card at closing for a mortgage loan, and would this then be disclosed on a loan estimate or closing disclosure?
I'm new to TRID and trying to understand tolerance and cure amounts for things such as the following:
Loan Estimate :
- Recording Fees $32.00
- Settlement Agent Fee $500 and
- Title Search $300.00
Title Search $500.00
What would be the tolerance cure?
If we give a lender credit on a refinance transaction and the credit exceeds the cost on the refinance, where do the excess funds (credit) go? Can the lender just reduce the credit, or does it have to be applied to a principal reduction?
A lender submitted a loan for purchase and I need help with a TRID violation that I found on the loan. The lender forgot to include two fees in the finance charges and the final closing disclosure signed by the borrower is understated by $535. Typically, we've always asked for a refund cure from the lender for the amount understated and a revised closing disclosure. The lender reviewed the situation and responded to me with this:
"After reviewing this loan I concur that neither the Purchase Review Fee ($500) nor the Wire Transfer Fee ($35) were included in the finance charge.
These fees are setup to be included in the finance charge. Support has looked into the issue and it appears that a user mistakenly or accidentally removed the check boxes. We are in the process of modifying our security settings to ensure that only limited users will have the security to change the prepaid finance status of any fees.
I have generated new calculations and the Finance Charge is now $93,017.70;
Amount Financed is $97,496.59;
and APR is 5.076%.
The APR did not increase beyond tolerance.
The change does not impact the amount of closing costs nor does it change the cash to close required from our member; therefore this does not constitute a post-consummation event (1026.19(f)(ii)) nor does it fall under the clerical error carve out (1026.19(f)(2(iv)) so there is not a way to cure but rather it is a technical violation that we will report to stakeholders."
The lender is stating that yes, the finance charge was understated, but this is not something that can be cured as it is was not a good faith estimate of itemized charges 1026.19(f)(2)(v), and it was not a clerical error. At this point we have two options:
• non-purchase for non-compliance with TRID
• allow even though there may be harm to borrower.
Would issuing a refund (cure) for an understated Finance Charge (assuming the Finance charge was understated by more than $100) bring the loan into compliance with TRID similar to issuing a tolerance cure for a specific closing cost fee increase?
We are doing a second mortgage where the first mortgage is already in escrow.
1.) Should we disclose the estimated escrow on page 1 of the Loan Estimate with No for being in escrow or should we completely leave them off since the borrower is already in escrow.
2.) On Page 4 of the Closing Disclosure how should we disclose here as well, and if we select no escrow, our only options are because the customer declined it or your lender does not offer one. Neither of these fit our situation because the customer is already in escrow with us, so they didn't decline it nor did we not offer one.