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CD shows closing costs financing, lender collected costs in cash at closing

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  • July 26, 2019 at 4:35 pm EDT #15850
    TheBank
    Participant

    The CD reflects closing costs to be financed. The lender accepted cash at closing to pay closing costs. Is a corrected CD required? I realize that the CD must reflect the terms of the transaction, but the loan is a construction only 1 year draw down line of credit with interest only monthly and principal plus interest at maturity. Would it be acceptable to only reduce the loan amount by the closing costs paid and not send a revised CD?

    July 29, 2019 at 3:44 pm EDT #15856
    rcooper
    Member

    I think you should provide a corrected disclosure so the customer has an accurate disclosure of the transaction.

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