Skip to content

Loan Officer Error- Initial Loan Estimate

Answered by: 

Question: 
95% LTV. Initial Loan Estimate was issued 2/27/17 with the monthly FHA MIP falling off the loan at year 12. This error was caught and a corrected LE was issued on 3/7/17 reflecting the monthly MIP continuing throughout the 30 year loan term. This was Loan Officer error and isn't a valid Change of Circumstance but how would you advise we proceed? How do we solve this? (Do we owe the borrowers the difference - that would be 18 years at $90 per month = $19,440!)
Answer: 

Monthly MIP payments are not in any tolerance tests. You have a non-correctable error on your initial LE.

First published on 05/21/2017

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics