[Manderson]

I have a situation where a typo was done on the CD and the LE. The loan has already closed. On the first page of the CD the File # is correct, but the loan ID # is incorrect. The first page of the LE the loan ID # is incorrect. This also means since the loan ID # is incorrect, it is printing this incorrect number on the bottom of each page on both the CD and LE. Does this need to be updated to the correct loan ID # to match the File # and resend both the CD and LE to the customer? What is the proper way to handle this situation and correct it?

Topic

[rcooper]

What is making the loan id # incorrect? Does it meet the criteria below and was the number also used on the CD?

1026.37(a)(12) Loan identification number (Loan ID #). A number that may be used by the creditor, consumer, and other parties to identify the transaction, labeled “Loan ID #.”

38(a)(5)(v) Loan identification number.
1. Same identification number as Loan Estimate. The loan identification number disclosed pursuant to § 1026.38(a)(5)(v) must be one that enables the creditor, consumer, and other parties to identify the transaction as the same transaction disclosed on the Loan Estimate. The loan identification number may contain any alpha-numeric characters. If a creditor uses the same loan identification number on several revised Loan Estimates to the consumer, but adds after such number a hyphen and a number to denote the number of revised Loan Estimates in sequence, the creditor must disclose the loan identification number before such hyphen on the Closing Disclosure to identify the transaction as the same for which the initial and revised Loan Estimates were provided.

[Manderson]

It was a scrivener’s error of the Loan ID # from the beginning on the LE. So it was disclosed incorrectly on both the LE and the CD. It was uploaded to our system with a different Loan ID # than what was disclosed to the consumer. Is there regulation or guidance on how to correct this? Should we send a new Disclosure or would a letter explaining the error suffice?

[rcooper]

There isn’t anything in the regulation that addresses redisclosing for an error like this. It sounds like the loan ID# matches from the LE to the CD so you can identify that the CD matches the corresponding LE. Can the loan still be identified by your institution from information on the CD? If so, I think it is fine.

[Author]

Replies