Academic journal article ABA Banking Journal

Real Estate Settlement Procedures Act Frowns on Tardy Loan Officers

Academic journal article ABA Banking Journal

Real Estate Settlement Procedures Act Frowns on Tardy Loan Officers

Article excerpt

Q. One of our lenders received a complete application for a RESPA-covered loan approximately two weeks ago, but he waited for two weeks to send it to our centralized mortgage processing area to generate the early disclosures. Obviously, we have not provided timely disclosures to our borrower. Can we provide a good faith estimate now--two weeks after the application date?

A. HUD RESPA Roundup, at http:// tinyurl.com/c3xkmsa: "If a loan originator fails to deliver a GFE in clear violation of 24 CFR Section 3500.7(a) and Co), the loan originator will have significant potential tolerance violations at settlement. See RESPA Section 3500.7(e).

"Where the loan originator has not provided the consumer with a GFE, when completing the HUD-1 comparison chart the loan originator's instructions to the settlement agent must indicate that the settlement agent must fill in the GFE columns with $0 and the HUD-1 columns with the actual charges from Page 2 of the HUD-1. If this results in one or more tolerance violations, the loan originator may cure the tolerance violation(s) by reimbursing the borrower the amount by which the tolerance was exceeded at settlement or within 30 calendar days after settlement. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.