RSK.IQ

TRID and Providing Revised Loan Estimate

Issue/Inquiry

The borrower applied to refinance a mortgage with the Bank.  He was not on the deed, but was going to be added since his father passed away and his mother was handing the home over to him. The processor disclosed this as a modification under New York law rather than a regular refinance, meaning that the state transfer tax would not apply, and the good faith estimate of closing costs in the Loan Estimate was made on that basis. Subsequently, the Bank discovered that the transaction could not be a modification since the borrower was not on the original obligation.  Is the Bank responsible for the tax because it was not disclosed on the original Loan Estimate? What leeway is there, if any, with respect to the “time of discovery” when it comes to reissuing a revised Loan Estimate?  

CRA and Reporting Loan Origination

Issue/Inquiry

The Bank originated a straight line of credit in 2019 for $700,000, which was reported on the Community Reinvestment Act Loan Register (“CRA LR”). A year has passed and the loan has been extended, at which time it had a balance of $350,000. Should the term extension be reported on the CRA LR? If so, should the original amount be reported or the present balance? What if there was new money given?

TRID and Correcting the Closing Disclosure

Issue/Inquiry

If the Closing Disclosure did not disclose the cost of the owner’s and lender’s title insurance on the correct lines, is the Bank required to provide a revised Closing Disclosure within 30 days?