Author Topic: Mortgage Refinancing Windfall?  (Read 1470 times)

FastStache

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Mortgage Refinancing Windfall?
« on: October 01, 2013, 06:23:55 PM »
I received a letter and a check of several thousands. 

The letter says during a post-closing review of your mortgage documents, it was found that your Truth in Lending disclosure was not provided timely prior to your loan closing. The disclosure was accurate, but this check is to reimburse you for this timing inconvenience.

Is there a reason they are compensating me so much for this error?  Am I missing out on something else by accepting the check? Or should I count my blessings and cash the check.

eman resu

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Re: Mortgage Refinancing Windfall?
« Reply #1 on: October 01, 2013, 06:57:38 PM »
Hi faststache,

Any reason not to contact your lender and ask for more info? 

If you're incredibly bored, the TIL timing requirements are available in regulatory gibberish at "Reg Z" Sect 226.18 and 226.19 (making a couple assumptions about the nature of your loan with that citation).

Some lenders take a "100% cure" approach to disclosure mistakes that carry potential liability... or are kindly directed to take that approach by their friendly neighborhood regulator. 

Like I wrote, why not ask the maker of the check?

eman resu

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Re: Mortgage Refinancing Windfall?
« Reply #2 on: October 01, 2013, 08:02:50 PM »
Hi again,

Just a thought: if you can dig out your Truth in Lending form(s), see if the amount of the check equals the difference between the "Amount Financed" on the form and the amount of $$$ you actually borrowed. If they failed to give you the "early" TIL within 3 days of application, they might be paying you back all the fees and prepaid stuff that makes the APR higher than the interest rate.