If a revised Loan Estimate was provided to include a second appraisal and a clerical error added a $6,000 lender credit, can it be removed/corrected?
I have a borrower who would like to use his primary residence as collateral for a business line of credit in the business' name. Does TRID apply or any other regulations if its a business purpose?
Do you need to document the credit file giving the reason if the application loan amount changed compared to the closing table amount, whether it is a consumer, commercial, or residential loan application?
Our company chooses to redisclose a Loan Estimate (LE) anytime a loan amount changes. I understand the requirements for when a loan amount would create the need for redisclosure but I have a question on the required timing for this. Being this is the path we choose to take and send redidsclosures as a curtesy on any change, would the 3-day clock start when the loan amount is actually changed in the system or when it's requested by the borrower?
I realize we're making things a little more difficult in determining the date of discovery but it's my stance that the actual change itself should be the trigger for the start of the clock. What is correct?
If loan amount requested on a pending mortgage application was changed after the Loan Estimate was issued and prior to the Closing Disclosure, can the appraisal fee can be increased?
If a "Can Shop For Fee" was disclosed on the loan estimate, but at closing that fee was not needed/purchased, is the fee removed from the 10% tolerance calculation? Or is it still recognized and included for cumulative totals?
When there is a postage fee/courier fee for a TRID loan, is this fee always disclosed as a prepaid finance charge or does who is charging for the fee determine if it is a prepaid finance charge or not?
For example, when the lender is charging a postage/courier fee, the fee is disclosed as a prepaid finance charge because the lender is charging it. When the title company is charging a postage/courier fee, would it be a non-prepaid finance charge, or is this still considered a prepaid finance charge?
If an Appraisal value has been received, should the appraised value be listed as an estimated property value or property value on the loan estimate?
What is the best practice when estimating homeowners insurance costs for Loan Estimate and Closing Disclosure? Do lenders generally get quotes, or reach out to the insurance agent, or have the borrowers do this?
We are having a hard time understanding how we would disclose this information to a borrower, especially on purchase transactions in which they likely have not set up insurance for the property at the time of application.
As to a Reset Tolerance; Say an appraisal fee was disclosed $550 on the initial Loan Estimate and a revised LE was issued with a Change of Circumstances stated rate lock and the addition of discount points and fees. However, the appraisal fee was removed by accident on this revised LE. After this, the processor catches the missing of appraisal fee and issue a initial Closing Disclosure with appraisal fee $550. In this case, do I need to provide cure of $550?
The reset tolerance was activated on the revised LE even if the COC at revised LE is stating only interest rate and discount point, is this correct?