Question

After a loan has been closed and funded, the creditor notices a tolerance violation with a fee between the LE and CD. How long does the creditor have to reimburse the borrower for the overcharge before being considered in violation of the TRID rule?

Answer 1

According to the TRID rule, a creditor has 60 calendar days to reimburse the borrower for an overcharge after a loan has been closed and funded.

Step-by-step explanation:

According to the TRID (TILA-RESPA Integrated Disclosures) rule, if a creditor notices a tolerance violation with a fee between the Loan Estimate (LE) and Closing Disclosure (CD) after a loan has been closed and funded, they have to reimburse the borrower for the overcharge within 60 calendar days. Failure to reimburse the borrower within the specified time would be considered a violation of the TRID rule.