Hey guys – I’m having trouble with something. We initially disclosed TIL with RESPA docs for a certain lot/block type of legal address. The property address didn’t change, but we got it wrong. It should have been lot 55 but instead we put lot 45. Can we re-disclose? None of the fees are going to changed, just the collateral description.
This is a great question. The long and short of it, is that I don’t think this particular situation is ever addressed, that I’m aware of. You are correct in that this wouldn’t necessarily be covered by a reason for redisclosure as spelled out in the regulation. You also make a great point that the charges would not be changing either. If commonsense applied then by all means I would be saying redisclose, you don’t have anything to worry about. Unfortunately that is not the case. You never know how a particular auditor or more importantly, a regulator, would view this subject.
I think the safest route would be to document your file well as to what has occurred. I think I would even go as far as to, send the applicant’s a letter explaining the issue about the address and as to why it is not the correct address, and keep a copy of the letter in file. This accomplishes two things. One, it allows you to clarify any questions that might arise from your applicants about the different address and answers any questions, someone may have in looking at the loan file. The second item that it addresses, would be to essentially avoid the whole question as to if you could redisclose or not.