The Consumer Financial Protection Bureau has adopted a rule that allows lenders to cure violations of the 3% cap on points and fees for qualified mortgage loans. The rule would provide lenders up to 210 days after consummation of the loan to cure overages by making a payment to the borrower of the amount of the overage plus the contractual interest. The cure period is shortened/terminated if prior to the 210 days, the borrower goes 60 days past due, the consumer institutes an action concerning the loan or the consumer sends notice of the excessive fees. While there is no “good faith” requirement as originally proposed, an institution does need to have policies and procedures for post-consummation loan review to detect and cure such errors. These policies do not, however, require the review of all loans nor mandate the cure of all violations.
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