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Loan Officer Error- Initial Loan Estimate

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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!)

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

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