CFPB Makes Correction!
CFPB clears up inconsistency in its regulations. Of course, the way it was written didn’t make sense. Still, some peace of mind here for lenders…
Here’s the changes:
According to the CFPB’s addendum, the supplementary information states that “property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees” are “subject to tolerances,” when it should read that those fees are “not subject to tolerances.”
The CFPB’s addendum states that the error, listing the fees as “subject to tolerances,” is inconsistent with the sentence that precedes it, which reads: “Property insurance premiums are included in the category of settlement charges not subject to a tolerance, whether or not the insurance provider is a lender affiliate”
Additionally, the CFPB addendum states that several lines will be revised from “are subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account” to read “are not subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account”.
Here’s to sound advice!
For More information go to https://walshesq.com/