Posted by Sandra Clark on 1/28/11 10:18am
Tolerance Cure? Explain pls n/m
Reply by Linda_H/FL on 1/28/11 10:33am
Re: Tolerance Cure? Explain pls
"Pursuant to 12 USCS § 3500.2 [Title 12. Banks and Banking; Chapter 27. Real Estate Settlement Procedures; Regulation X (24 CFR Part 3500)--Real Estate Settlement Procedures], the term tolerance means “the maximum amount by which the charge for a category or categories of settlement costs may exceed the amount of the estimate for such category or categories on a GFE (Good Faith Estimate).”
The cure would be bring the final actual costs in line with the GFE initially provided, within a certain percentage.
Reply by Dennis_IN on 1/28/11 11:00am
Linda's right: One reason you see Lender/broker credits
on the HUD is to bring the closing costs in line with the GFE. This is the solution to the old bait and switch with fees "some" lenders and brokers used to pull. It protects the borrower, I think it is a good thing. How many times in the past were we hung out to dry by brokers who failed to properly disclose all the fees.
Reply by Sandra Clark on 1/28/11 11:17am
Re: Linda's right: One reason you see Lender/broker credits
Thanks so much! You guys (gals) are always a great source of info. Knew it was a credit but couldn't figure out how it was figured into the loan........again, thanks!