If we have a loan file where we could not disclose the LE within 3 days (disclosed on the 4th day) due to a system issue that corrupted the file and couldn't send the 3rd day, can we still charge all the fees as normal and is there any other issues we could run into such as salability of the loan to Fannie/Freddie? Would we be better to start a new file?

You have a late LE which is likely to impact your ability to sell the loan into the secondary market. What do you mean start a new file? You cannot start a new file to cover-up a compliance or timing violation. That would likely compound your problem with a UDAAP finding and possibly a violation related to an intentional violation.

thanks Randy - is there anything that prevents us from charging fees?

There is nothing in the regulations that would indicate that. You have a timing rule violation.

I'm happy to let someone correct my thinking, but personally I'd consider that a low risk issue - if it's a one-off, we sent the disclosure as soon as we could, and it's not something that is likely to recur. Document and move on. On the other hand, if the process that produces the file is susceptible to error, I would consider updating procedure to ensure that the disclosures go out in 2 days instead of 3, to mitigate the risk of recurrence - or figure out how to fix the tech issue. And then document those steps.

For a portfolio loan, sure. However, an investor is not going to care what caused it. They are not going to purchase it or they will put it back later if the loan goes south.