If the property address was incorrect on the LE and now incorrect on CLoD and we finally get the correct address from the customer at the closing table.....can that be corrected on a revised CloD?

I remember in one of the early trainings done by BOL that the property address on the CloD could not be corrected. THis is a construction loan now moving into perm. The customer completed the application with just the County Road Number and never indicated to us that the address was anything different. We get to closing and the customer has marked thru the paperwork and put the correct address on everything.

This is also going to secondary market and they are telling me that the investor won't purchase the loan unless the property address is correct.

I can't find in the regulation where it states the property address cannot be corrected.

It's an error that needs to be corrected. I see no reason it can't be corrected on a revised CD.

What you probably heard in that early training session was that an error in the property address can't be corrected under the "clerical error" provision of §1026.19(f)(2)(iv). As it says in comment 19(f)(2)(iv)-1, "However, if, for example, the disclosure lists the wrong property address, which affects the delivery requirement imposed by § 1026.19(e) or (f), the error would not be considered clerical."

You will need to be able to document that having the wrong property address (or, at least, the wrong street address for postal delivery) did not affect your ability to timely deliver disclosures.

Based on the fact that you used the best information available at the time the CloD was issued (I'm assuming the borrower was the best source of the information), and that the "old" address information was accurate in that it indicated the correct parcel of land, I think that providing an updated CloD with the correct property address is appropriate.

The appraisal was done on the correct property but has the incorrect address, so we are getting that updated. The flood was done on the incorrectly given address, so we are updating that! The customer was delivered the CloD in person so it was delivered timely. We are in the process of getting the CloD updated to the correct address now.

Just aggravating that the customer didn't say something at the time of the initial CloD and waited until the closing table to then "mark out" the incorrect address and enter in the correct address.

UGH! This is the first time we had an address incorrect after issuing the CloD. We normally correct the address on subsequent LE's or the initial CloD when we determine the address was incorrect. Just aggravating when no-one says a word until the closing table!!!

To be fair, BrendaW, if the lender wants to correctly secure its loan and properly address such niceties as the appraisal and flood determination, it's incumbent upon the lender to do some digging when it gets an address that seems vague or less than precise. That's not to say that your bank didn't do due diligence here but it sure suggests that the process should be looked at.

By the way, I suggest you absolutely cannot close until you have that corrected flood determination in hand, and you better hope that the building isn't in a DFHA.

Oops, it's too late to avoid the flood insurance mess. I forgot, this loan is already on the books as a construction loan.

Probably singing to the choir here, but I think you need to review your closing procedures. If the customer makes any attempt to change the documents because something is not correct, the closing should have stop at that precise moment and the impact should have been fully analyzed, all the appropriate documents should have been reproduced with the changes made, or the closing delayed or both. This loan should never have closed with such an error noted by the borrower. You may have gotten away easy this time, but what if it was something that would have really messed up the entire transaction. Line-thru changes by anyone should never be allowed on mortgage closing documentation.