Skip to content

How to Cure A Loan Post Consummation

Answered by: 

Question: 
We recently found a fee that was charged to a borrower and needs to be cured. The closing has already happened and we charged too much. Could you tell me the proper steps on how to cure a loan post consummation and where do we place the cured amount on the cd?
Answer: 

You will adjust the closing costs on page 2 and send a revised CD and either send them a check or document a principal reduction on the loan.

See: 1026.19(f)(2)(iii) Changes due to events occurring after consummation.

and, for a principal reduction, if applicable, see: Section 1026.38—Content of Disclosures for Certain Mortgage Transactions (Closing Disclosure) - Comment 4

First published on 10/21/2018

Filed under: 
Filed under lending as: 

Search Topics