Jan. 11 – Read our January newsletter with agency updates and notes from our last webinar. MCA.com

We want to thank everyone who attended our webinar “Evaluating Your Appraisal.” We had many excellent questions during the webinar, and we were able to answer several on air. For multiple questions that weren’t answered during the webinar, you can find the answers below. You can also download the slides below.

• Download the slides

Our experts look forward to serving all your mortgage compliance needs. Call 877-250-5243 or email info@mortgagecomplianceadvisors.com.


Have more questions? Submit a question or comment in the comment box at the bottom.

You can also sign up to receive invitations to our webinars and monthly compliance updates.


Question 1 – Is it true that if we determine that an appraisal is unacceptable, our only choice is to order a second appraisal?

• Answer – You are allowed to contact the appraiser and ask them to correct any errors with the appraisal. Please review FNMA FAQ regarding who may contact the appraiser with questions.

Question 2 – If the appraiser uses poor comps and has red flags, we are stuck with the appraisal and can only complain to the AMC. Any thoughts?

• Answer – Section II of AIR states: If there is a reasonable basis to believe that the initial appraisal was flawed or tainted and such basis is clearly and appropriately noted in the Mortgage file, then a secondary appraisal may be ordered. However, the burden lies with you proving the first appraisal was flawed.

Question 3 – Is it required to have a copy of legal description attached as an addendum?

• Answer – Legal description is required to be on the top portion of the appraisal. Legal description attached as an addendum appears to be ok.

Question 4 – Can ANYONE ask an appraiser why certain comps were not used in their report?

• Answer – If your intent is to influence the value then this not allowed. Please review FNMA FAQ regarding who may contact the appraiser with questions.

Question 5 – When is it necessary to perform the income and/or cost approach to value?

• Answer – Income is only necessary on investment properties. Cost approach is only required on manufactured homes and when requested.

Mortgage Compliance Advisors offers a free webinar every month. Visit www.MortgageComplianceAdvisors.com to register for next month’s webinar or to learn more about how MCA can serve all your compliance needs.


(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)

We want to thank everyone who attended our webinar “Essentials of a Compliant QC Plan.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides below.

• Download the slides

Our experts look forward to serving all your compliance needs. Call 877-250-5243 or email info@mortgagecomplianceadvisors.com.


Have more questions? Submit a question or comment in the comment box at the bottom.
You can also sign up to receive invitations to our webinars and monthly compliance updates.


Question 1 – How do you go about verifying assets?

• Answer – You would attempt to get the company to verify the information you have in your file is correct, via new VOD or phone conversation. You will want to assure that the asset documentation has not been forged or altered in any way.

Question 2 – We are a broker and most of our lenders will require a quarterly audit of our FHA loans.  You mentioned the detailed QC Plan reviews are trickling downhill.  Do you foresee lenders requiring their approved brokers to do more than the 10% of FHA loans being audited?  The FHA loans are all we’re auditing at this time.  Do we need to include all of our other loan types?

• Answer – I do not anticipate any lenders requiring more than the FHA required 10% selection. We are certainly seeing a bigger focus on Quality Control from all lenders and agencies.  You are only required to audit files if your investors or licensing agencies require it.  However, I would recommend you QC at least 10% of all your loans. This will give you a good baseline of the quality and risk level of all the loans you originate.

Question 3 - What is acceptable to meet occupancy certification requirements?

• Answer – There is not guidance on this topic. However, if audited, you will need to justify that a satisfactory attempt to verify occupancy was conducted.

Question 4 – Are these reviews [discretionary reviews] required if you’re a broker and not the lender?

• Answer – If you are a broker, then you are only required to conduct QC reviews if your investors or licensing authorities require you to do so. If those entities do not require discretionary reviews, then you are not required to perform them. However, it’s good business practice to know the quality of the product you are selling.

Question 5 – Adverse Action Reviews. Can they be done in house, with processing staff the same as the prefunding reviews, or do they need to be done using the same process as QC of closed files, in our case, outsourced?

• Answer – I am not aware of any rules stating Adverse Action reviews must be done independently. However, I have also not read where they are allowed to be outside of the independent QC department.  This will need to be a company decision.

Question 6 – If we use a 3rd party servicer, who performs the audits?

• Answer – The 3rd party typically performs the audits.

Question 7 - To be in compliance with ECOA (Reg B) if we have pulled credit on a file as a pre-qual example TBD – are we still required to send a notice of action if we are unable to approve this loan due to excessive ratios or something along those lines, we would have pulled credit. These files would be either TBD loans or incomplete applications. These loans would not be subject to HMDA correct if they are a TBD property.

• Answer – ECOA’s definition of application is much more broad and vague than the RESPA definition of application. I would recommend in this example to meet your ECOA regulations–you either issue an approval or adverse action (denial) within 30 days. If your TBD meets the definition of Pre-Approval, you are required to report this transaction to HMDA.

Question 8 - Since your presentation is focused for the large lenders where agencies are performing audits–perhaps you can comment on the differences on QC level for the smaller brokers, ie is just having a company like MCA auditing our loan files enough?

• Answer – QC is about risk management, so I would I would suggest you complete as many of the steps as possible that I mentioned in the presentation. Obviously, you will not be reviewing as many details as the lender would. If you are outsourcing, your QC your vendor should be auditing your files according to your business type. When MCA audits a file, they only hold the broker accountable for items they have control over.

Question 9 – Will you please repeat the calculation for the defect rate?

• Answer – Fannie Mae defines Defect Rate as: The number of loans, expressed as a percentage, reflecting the total loans with defects discovered in the loan review process divided by the total loans reviewed.

Question 10 - It was mentioned that these webinars are available monthly. What do we need to do to be able to join every month?

• Answer – If you are on our newsletter list, we will send you an invitation to our webinar every month. Anyone can sign up for the newsletter here.

Mortgage Compliance Advisors offers a free webinar every month. Visit www.MortgageComplianceAdvisors.com to register for next month’s webinar or to learn more about how MCA can serve all your compliance needs.

(MCA makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This Q&A is not legal advice and should not be used as a substitute for proper professional or legal advice.)

We want to thank everyone who attended our webinar “Common Compliance Findings of 2010 & How to Prevent Them.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides below.

• Download the slides

Our experts look forward to serving all your compliance needs. Call 877-250-5243 or email info@mortgagecomplianceadvisors.com.


Have more questions? Submit a question or comment in the comment box at the bottom.


You can also sign up to receive invitations to our webinars and monthly compliance updates.


Question 1 – What kind of documents are reviewed for proof of UW signature?

• Answer – Loan Approval, Transmittal Summary, FHA Transmittal Summary, FHA Conditional Commitment, FHA DE Approval, VA Loan Analysis, etc.

Question 2 – What is the Tabular TIL?

• Answer – TILA, specifically MDIA, states the following:  “The September 2010 interim rule requires creditors who extend consumer credit secured by real property or a dwelling to disclose summary information about interest rates and payment changes in a tabular format.” This will be enforced on all applications taken after January 30.  For more information, please visit http://www.federalreserve.gov/reportforms/formsreview/RegZ_20100924_ffr.pdf.

Question 3 - What are the penalties or ramifications for not disclosing correctly or timely?

• Answer – The penalty for violating RESPA is up to $10,000 and/or 1 year in prison for each violation. The penalty for violating TILA is $5,000 and/or 1 year in prison for each occurrence. This is in addition to any restitution paid to borrowers.

Question 4 – Can GFE be given to one of two applicants at the time of application and funds collected at that time for appraisal?

• Answer – No, this is would be a violation of RESPA and TILA, as both do not allow for certain fees (including appraisal fees) to be collected at time of application. Also, the GFE must be provided to all borrowers on the application.

Question 5 – When you indicate 7 days from initial TIL to closing, is the day of the TIL day zero, then 7 business days, and then closing can occur after the 7th day?

• Answer – The 7 day waiting period begins the day you send the TIL to the borrower. Closing can occur after the 7th day.

Question 6 – If the borrower dates the disclosures the same day as they were disclosed, would you still need proof of when and how you sent the disclosures?

• Answer – If the application is taken in person and the borrower signs the application and signs/initials the disclosures with a date, this is acceptable evidence of disclosure.

Question 7 - Does the date you pull a credit report count as an item to determine if you’ve taken an application?

• Answer – No. A credit report is not one of the 6 pieces of information that RESPA has defined as an application.

Question 8 - Please provide commentary on important date #2: What is the date for subsequent reissues?

• Answer – You are not required to offer the settlement costs for longer than the original 10 business days.

Question 9 – Can you comment on delivering redisclosures via e-disclosure…do we follow the delivered timeline outline for “mailed” or can we consider received when they receive the e-disclosure?

• Answer – You will need to follow the US mail timeframe unless you have evidence that the borrowers have received the disclosures.

Question 10 - What kind of evidence is acceptable to retain in file that initial disclosures were provided within 3 days?

• Answer – Please refer to page 27 of the presentation. The slides from this webinar can be found at http://www.mortgagecomplianceadvisors.com/wp-content/uploads/2010-Common-Compliance-Findings.pdf.

Question 11 – Is a Decline a changed circumstance?

• Answer - A decline is not a changed circumstance. A decline is an Adverse Action, and a notice must be given to the borrower with reasons for the denial within 30 days of application.

Question 12 – Do any regulators (FDIC, etc.) post common audit findings online?

• Answer – I don’t believe so, but they are government agencies and therefore subject to the Freedom of Information Act.

Question 13 – If a mistake is made on page 1 of the GFE, can or should it be corrected without a changed circumstance, or should you just leave it and risk the violation?

• Answer – It can only be corrected if there is an acceptable changed circumstance. RESPA does not allow for change to be made as a result of a typo or mistake. We highly recommend you review your GFE prior to disclosure.

Question 14 – Should box 1 be the expiration date, or are they asking the date of the GFE?

• Answer – If you are referring to box 1 in the important dates section, this is how long you are going to make the rate offered on the GFE good for. There is no rule as to the time you must give, other than that a date must be given.

Question 15 – Where is the best place to go to get the detailed information on LQI?

• Answer - Please refer to this site https://www.efanniemae.com/sf/lqi/index.jsp.

Question 16 – We need to pull LDP & GSA on FNMA files?

• Answer – Yes. It is now a FNMA regulation that is part of LQI and is required on applications taken after 6-30-10.

Question 17 – We have to re-disclose the TIL if the APR “decreases” by 0.125%?

• Answer – Yes. Here is the excerpt from TILA 226.22:

(2)  the annual percentage rate shall be considered accurate if it is not more than 1/8 of 1 percentage point above or below the annual percentage rate determined in accordance with paragraph (a)(1) of this section.

(3) In an irregular transaction, the annual percentage rate shall be considered accurate if it is not more than ¼ of 1 percentage point above or below the annual percentage rate determined in accordance with paragraph (a)(1) of this section.46


Question 18 - Re: the Final GFE matching the Final HUD, how do we “force” Escrow to not change the Final fees after closing?

• Answer – I would recommend reviewing all the HUDs prior to closing and ensure they have been completed correctly.

Question 19 - Where can we get the Special Information Booklet?

• Answer – Special information booklets can be downloaded at  http://www.hud.gov/offices/hsg/ramh/res/settlement-cost-booklet03252010.cfm or you can contact HUD to order copies.

Question 20 - Does the letter stating that the disclosures were sent need to be signed by the borrower? Or can we just do a certification?

• Answer – No, the letter does not need to be signed by the borrower. You will just need to retain documentation of when and what documents were sent.

Question 21 – Providing disclosures within 3 days is a hot topic. We have online customers that submit online and “view” the disclosures during this process. Is the submittal printout in the file showing the disclosures viewed, proof that the disclosures were provided?

• Answer – If you can show proof that the borrowers viewed the disclosures and you retain this documentation in your file, it should be acceptable. Please review the e-disclosure rules to assure you are in compliance.

Question 22 – We have a few lenders that will not provide copies of the underwriting package signed by the underwriter.  How do we handle this if we cannot get these items from the lender?

• Answer – I would recommend you note in your file that you requested these documents from the lender and your request was denied.

Question 23 – You said RESPA/TILA adopted the 6 pieces of information as a Loan Application. Would that also apply to the ARM Booklet due 3 days after “application”?

• Answer – This is correct. If you take an application for an ARM loan, you will need to provide the CHARM booklet to the borrower within 3 days of receiving all 6 pieces of information.

Question 24 – Are we required to input the SRP that we are receiving for the rate on the GFE, regardless of whether we are bank/broker, correspondent etc….?

• Answer – SRP is not required to be disclosed on the GFE.

Question 25 – Some end investors will not purchase the loans if the disclosures and re-disclosures are incorrect or not provided within the proper timelines. Same with the APR decreasing by more than .125%. Some end investors will not purchase the loans, so I would recommend checking with your intended investor.

• Answer – We always recommend ongoing conversations with your investors as to what their requirements and polices are.

Question 26 – Shouldn’t line 1 of the important dates be the actual lock date if the loan is locked?

• Answer – If your rate is locked, line 1 in the important dates section should be the day the rate lock expires.

Question 27- Is the late fee for VA 5% or 4%?

• Answer – The late fee for a VA loan is 4%.

Question 28 – Refinance loans must be disclosed within 3 days of receiving the 6 pieces of information, correct?  You cannot choose not to ask for income or withhold disclosures for the documentation to support what the borrower has stated or provided, correct?

• Answer - I agree on both accounts.

Question 29 – On the GFE, can the credit amount change if you are a broker?  One of my lenders told me that could never change. My understanding was it could as long as you were below the original total origination fee.

• Answer – It is our understanding that fees to the borrower can decrease (or credit increases) without penalty.

Question 30 – If you have an interview date on the 1003 of the 3^rd, but you don’t have the 6 items to make it an official application but you get a contract on the 10th, can the interview date be the 3rd and all the rest of the RESPAs be dated the 10th?

• Answer – Yes, this is acceptable. However, your application date will be the 10^th, as this is when you received all 6 pieces to complete the application.

Question 31 – By date stamp, do you just mean having a date on the cover letter?

• Answer – Yes. Or a date stamp on each disclosure provided to the borrower.

Question 32 – Must an authorization to release information be signed prior to pulling credit, or can it be done later?  My understanding was they can give you a verbal authorization.

• Answer – You are allowed to receive verbal authorization to pull credit. However, we recommend you document in your file when the verbal authorization was given. Only having a borrower authorization in the file signed after the credit was pulled is not acceptable.

Question 33 – Are fees/costs included in the Rehab Escrow Account on 203K deals disclosed on the GFE?

• Answer – Yes, these would need to be disclosed on the GFE as they are costs associated with obtaining the loan.

Question 34 – Are they going to put the GFE and TIL on one form or just make it one set of rules/timing?

• Answer – They are going to combine both forms into one single form. There have already been some working drafts of the form released.

Question 35 – How can you prove when you received all 6 items needed for the application?

• Answer –When there is evidence in the file.

Question 36 – Could you explain briefly what a change of circumstance is defined as?

• Answer – The following describes RESPA’s definition: Changed circumstance  is now defined in § 3500.2 as: (1) Acts of God, war, disaster, or other emergency; (2) Information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided, which information may include information about the credit quality of the borrower, the amount of the loan, the estimated value of the property, or any other information that was used in providing the GFE; (3) New information particular to the borrower or transaction that was not relied on in providing the GFE; or (4) Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.

Question 37 – I know what LDP is, but what is GSA?

• Answer – The GSA is the General Services List, also known as the Excluded Party List.

Question 38 – Earlier in the conference you said there were some exceptions to the 3 day waiting period after a TIL is disclosed.  Can you clarify that?

• Answer – TILA does offer an exception to the 3 day waiting period.  It states if the borrower has a bona fide personal emergency, they can waive the waiting periods. However, I would not recommend using this exception, and most investors will not allow this either.

Question 39 – The error rates re: final HUD-1 does not match the most recent GFE …Do your findings only include those fee discrepancies that exceed tolerance levels, or are you including all discrepancies in this trending analysis?

• Answer – We would issue findings for both a tolerance violation as well as the final HUD-1 not matching the most recently issued GFE. Both would be included in the trending analysis.

Question 40 – What is the best source for testing—Is it Volume Percentage or Statistical Samples?

• Answer – We recommend using the volume percentage sampling.

Mortgage Compliance Advisors offers a free webinar every month. Visit www.MortgageComplianceAdvisors.com to register for next month’s webinar or to learn more about how MCA can serve all your compliance needs.

(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)

We want to thank everyone who attended our webinar “Managing the Year of Change.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides below.

• Download the slides
• Download the slides in handout format

Our experts look forward to serving all your compliance needs. Call 877-250-5243 or email info@mortgagecomplianceadvisors.com.

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Question 1 – You have stated that MDIA defines an application the same way as a GFE. So, you are saying that if we do not disclose a GFE because we do not have all of the pieces, then we do not have to issue the TIL either?

• Answer – Yes. This is correct. TILA/MDIA shares RESPA’s definition of an application. If you do not have what is defined as an application then you are not required to disclose a TIL statement. This can be found in 12 CFR 226.19 for the Truth in Lending Act.

Question 2 – The Dodd 1 yr GFE and TIL combined implemented from what effective date?

• Answer – The effective date is 1 year after transfer. That would be July 22, 2011. However, there is already a working copy going around, and I would expect it to be implemented well before this date.

Question 3 – I had a question related to the LO compensation that we discussed in webinar today. Changing LO compensation is a fairly easy regulation to comply with. It requires a change to the existing mind set, but logistically, it is not difficult. The requirement is to pay the LO based on total volume as a percentage or flat fee per until or some other method that doesn’t result in steering the borrower to an undesirable product.

Ok, so I’m with the regulators so far. Then, here is where I get lost. The regulation also says that companies that broker loans are also subject to the regulations. Ok, so now a brokerage firm or even a lender when acting as a broker also can not be paid differently for different pricing tiers or loan programs? So, effectively investors have to stop by brokerage firms how they are currently paying them. It is not simply paying the loan officer appropriately, but you also have to change the way you pay the firm. The interesting part is that secondary market transactions are exempt, so investors can still pay lenders but not brokers in spread premiums that change with loan program. So, it appears that the regulation much like RESPA is trying to put brokers at a competitive disadvantage. Am I understanding this correctly?

• Answer – Yes, according to the rule, an originator is a loan originator and a broker company. Therefore, a broker company cannot be compensated based on the terms of the loan.

Question 4 – What is GSA and LDP?

• Answer – GSA and LDP are lists compiled by the government that include individuals and companies that have violated certain rules, laws, or who have defaulted on an obligation. If a borrower or company is on either of these lists, then they would be excluded from receiving a loan in certain circumstances.

Question 5 – For an FHA loan, how do we handle where purchasing spouse is legal US resident with valid SS#, but non purchasing spouse is illegal with only an ITIN?

• Answer – FHA does not allow a borrower with an ITIN. You will need to search out a different solution for this or not use the non-purchasing spouse in the approval.

Question 6 – It appears under the new LO compensation rules that take effect 04.01.2010 apply to mortgage broker companies and retail lender companies when their broker loans and not just to how the LO is paid.  Of course, secondary market exception applies to non-brokered rules but it appears that companies not just LO compensation cannot be paid differently based on the loan program. Therefore, it appears to make YSP or market price now illegal even if the LO is paid consistent with the rule.  So, investors are going to have to change the way they pay the broker companies as well is my understanding.

• Answer – Yes, according to the rule, an originator is a loan originator and a broker company. Therefore, a broker company cannot be compensated based on the terms of the loan.

Question 7 – Can you say again where the handouts from the slideshow are on your website?

• Answer – Copies of the slides to all our webinars are located in the News and Resources tab on our website. You can also download the slides directly here.

Have more questions? Submit your question in the comment box below.


Mortgage Compliance Advisors offers a free webinar every month. Visit www.MortgageComplianceAdvisors.com to register for next month’s webinar or to learn more about how MCA can serve all your compliance needs.

(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)

We want to thank everyone who attended our webinar “Common Compliance Findings and How to Prevent Them.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides from the webinar.

We look forward to serving all your compliance needs. Feel free to contact us with any requests or questions. Click an icon under “Contact Us” at the top right.

Question 1 – If we purchased a QC manual from MCA, are updates available for new laws?

• Answer - Yes, MCA does offer updates to your Quality Control Plan. You can contact us at your convenience so that we can discuss the specifics of your plan.

Question 2 – Do you have a suggestion on how much time before closing we should pull the FNMA comparison report?

• Answer – If you are referring to the re-pulling of credit to check for undisclosed liabilities, we suggest you pull this as close to closing as possible.

Question 3 – What is an example of proof of receipt?

• Answer – An example of proof of receipt would be a confirmation email, delivery receipt, fax confirmation, etc. (See slide 32)

Question 4 – How do you address a GFE issued as a lender and a subsequent submission as a broker?  One will have YSP and one will not, and investors fees are different.  Can you give guidance on this when we are submitting to 2 different avenues?

• Answer – Once you provide the GFE, you cannot change the amount in block 1. This includes your investor fees. However, when you lock the loan, you will then be required to state the credit (YSP) to the borrower.

Question 5 – If the origination fee on the initial good faith estimate is less than the actual origination charge on the final HUD, is any corrective action required?

• Answer – No corrective action is needed. However, some investors will require your most recently disclosed GFE figures match the final figures on your HUD1.

Question 6 – Are we required to provide evidence that the disclosures were provided to the borrowers within 3 days of the application date and/or the disclosures are required to be signed and dated within 3 days of the application date?

• Answer – Yes, you are required to provide evidence you sent disclosures within three days of application. Borrowers are not required to sign the initial disclosures. However, some states do require their disclosures be signed.

Question 7 – Is redisclosure of TILA required if it increases .125%? We are interpreting if this increases or decreases.

• Answer – TILA does state you need to redisclose if the APR increases or decreases by more than .125%

Question 8 – Do you have a list of what is considered “prepaid finance charge”? I am finding a great disparity of what is considered a PPF.

• Answer – We recommend you visit Doc Magic’s site for their Fees & Charges List Matrix.

Question 9 – When a loan goes from a “float” to a lock and nothing else will change, is the GFE required to be redisclosed?

• Answer – Yes, you will need to redisclose and update the important dates section on the GFE.

Question 10 – What is considered an early default, and if we do not service, how would we know?

• Answer – Early Payment Default (EPD) is defined as 60 days late in the first 6 months by FHA and Fannie Mae defines EPD as 90 days past due in the past 24 months. For FHA, you can get this info in FHA Connection. For Fannie Mae you will need to be the servicer for this info.

Question 11 - How do you determine the application date while auditing to know that the initial disclosures were provided within 3 business days?

• Answer – We generally use the earliest date located on the application. Generally the day the LO signed the application.

Question 12 – Must we issue a new TIL to customer within 3 days of discovering a change of interest rate or is it okay if mailed 6 days before closing?

• Answer – A borrower must receive the new TIL 3 days prior to closing. If you mail the redisclosed TIL, you can close on the 7th day after mailing.

Question 13 – If you are a wholesale lender, does the 7 days start when you get the application or when the broker took the initial application?

• Answer – According to TILA, a broker cannot issue a TIL (unless table funded). The 7 day waiting period does not start until the lender issues the initial TIL.

Question 14 – Does the 10 business days include Saturdays? I’ve heard yes and no.

• Answer – Yes, you can count Saturday as a business day. (See slide 33)

Question 15 – What is a best practice correction, if a GFE does not have the important dates filled in correctly?  Is it okay to send a revised one to the borrower and put a processor cert explaining why in the file?

• Answer – Yes. You are required to redisclose the GFE if there are changes to the important dates. Your Changed Circumstances form should state the reason for the change.

Question 16 – Do we need to include the TIL verbiage on all Truth in Lending disclosures? We have heard it is not required on the final TIL.

• Answer – When reviewing the file for an audit, we follow the instructions per MDIA in that we look to see the verbiage has been included on the initial and any subsequent TIL disclosures, as well as the final TIL. What you are referring to is that some lenders are allowing the omission of the verbiage if the final TIL is within .125% tolerance of initial TIL. If the final is over the .125% tolerance, technically it is a re-disclosure of the TIL and is required to be provided to your borrower within 3 business days of closing. You will then have three disclosures, the first two which will be required to have the verbiage, and the Final, which your lender may not require the verbiage to be printed on.

Question 17 – What can I do to remedy findings in my QC audit report?

Answer – We suggest you review all the findings you receive in your Quality Control report. If you find that the issue was incorrect, copy the documents and attach them to your Quality Control report and make note of the corrections.

(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)