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February 2, 2012 at 3:59 pm #2405RGSParticipant
I’m reviewing a loan where we properly disclosed everything as we knew it at closing on the HUD, that is to say the HUD fairly and accurately represents the costs the borrower paid on their refinance transaction.
On the day the loan was out of rescission the loan officer double checked the pay-off and discovered that it was off due to a holiday miscalculation. Since it was our error the loan officer expensed the additional interest for the payoff from a GL account and cut an additional check to send in along with the proceeds check that was referenced by the HUD.
Is the HUD wrong? I can make an argument both ways, and I’ve confused myself so I’d like additional perspective.
Thank you.February 2, 2012 at 8:07 pm #2864JGo9Participant
I don’t understand why you would be having such are hard time making this determination, after all you just have to look at the Reg, instructions on completing the HUD, HUD issued FAQ’s, and the various issues of the RESPA Round Up (insert sarcasm here). It wouldn’t be much of a challenge if they had everything in one place for us. OK enough, I’m getting of my soap-box now.
I did review all of the aforementioned items and I didn’t find anything that specifically spoke to this particular issue. That being said, the HUD should be accurate and complete and I would guess that the HUD is wrong.
I was looking at the items that are listed on the comparison chart and I don’t see that any of these items would necessarily be effected by the oversight that you mentioned. So that’s a good thing, that should mean no kind of reimbursements or cures to perform. It sounds like the bank took the responsible route to pony up for the miscalculation to payoff the loan. Assuming that this is not a common occurrence, I wouldn’t sweat it. Learn from it, see if there is anything you can put in place to help prevent it from happening again in the future, and move on.
I hope this helps…February 2, 2012 at 10:04 pm #2866RGSParticipant
Thanks, that was more or less my thought – with the only exception being that the HUD truly reflects the borrowers’ costs. To be honest if the loan officer hadn’t placed a copy of a check in a file, I would have never known this.
The biggest lesson to be learned here is to review your HUD prior to closing, but my guess is that holds true at every bank.
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