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Loan Estimate not Sent to Borrower

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Question: 
intent to proceed prohibits charging fees other than for credit report before the Loan Estimate is provided and the applicant's intent to proceed has been confirmed and documented. If due to a technical issue which we discovered post closing the Loan Estimate was never sent to the borrower, is the lender obligated to refund all closing fees based on the Intent to proceed rule?
Answer: 

The intent to proceed rule is not the issue. If you failed to provide the consumer an LE, regardless if it's a "technical" issue, then you did not comply with 1026.19(e) for providing a good faith estimate for the charges. Since you did not disclosed any fees on a LE to compare the CD fees to you have tolerance violations. 10% of 0 is 0 and then there are the 0 tolerance charges.

You owe the consumer a cure for the closing costs.

First published on 03/07/2021

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