MAJOR FEATURE
Support to calculate Tolerance Cure Amount. (HOT-35935)
The system now includes a Tolerance Cure Calculator on the Review Fees screen, which is available every time a disclosure is generated. This tool calculates the required cure amounts based on any fee changes, always using the last disclosed amount as the baseline for all tolerance calculations.
Tolerance Cure Calculation Logic:
The system automatically prompts for a CoC reason whenever a fee that impacts the tolerance calculation is updated to an amount greater than the last disclosed fee.
- Valid CoC Reason: Pending Baseline amount = Actual Baseline amount.
- Invalid CoC Reason: Pending Baseline amount = Baseline amount.
The Fees Tolerance Analysis dialogue box will appear upon updating any points that affect the tolerance calculation, such as borrower-paid fees, the Service Provider, and the Borrower shop flag under Section C.
Users also have the option to manually input the Tolerance Cure amount by checking the Override box.
Tolerance Cure Amount Calculation Formulas:
- 0% Tolerance Cure: (Actual amount) - (Pending Baseline amount)
- 10% Tolerance Cure: (Current 10% Tolerance Difference) - (Allowable Tolerance Difference)
- Current 10% Tolerance Difference = (Actual amount) - (Pending Baseline amount)
- Allowable Tolerance Difference = 10% of (total of Pending Baseline amount)
Tolerance Cure calculations adhere to TRID guidelines and apply the following section-specific rules:
| Section | Fee Type/Condition | Tolerance Rule |
| Section A and B | All Fees | 0% |
| Section C | Borrower Did Not Shop the Service | |
| -- If Affiliated Service Provider | 0% | |
| -- If Unaffiliated Service Provider | 10% | |
| -- If no Service Provider | 10% | |
| Borrower Did Not Shop the Service | No/Unlimited Tolerance (Wont be part of Tolerance Calculation) | |
| Borrower Shopped flag not provided by user | ||
| -- Affiliated Service Provider | 0% | |
| -- Unaffiliated Service Provider | 10% | |
| -- Service Provider is none | 10% | |
| Section E | General Fees | 10% |
| Tax Transfer Fee | 0% | |
| Section F | Prepaid Mortgage Insurance | 0% |
| Section G and H | All Fees | No Tolerance |
Additional System Updates:
- If the loan is not disclosed and the "shop for" indicator is not filled by the user, the Borrower shopped icon should not be persistently displayed, but instead appear only on hover.
- Affiliate Flag: A new Affiliate Flag is displayed for the Business Contact’s Company in the Section C service provider list, Business Contact Pipeline, and Loan Center section.
- If Section C fees migrate to Section B (after the loan stage changes to Approve with Conditions), the Service Provider and its list will be retained from Section C.
Important Notes:
The tolerance calculator is unavailable for loans where the first disclosure was generated before the deployment of this feature.