A post-closing review on 14 August finds a $210 tolerance violation on a loan that closed 2 August. By what date must the lender refund the tolerance excess and provide the corrected Closing Disclosure?
Correct Answer
B) Refund and correct within the 60 days of consummation, so by 1 October
B. Refund $210 and provide the corrected disclosure within 60 days after consummation. The stem identifies an excess subject to the good-faith tolerance cure, so the consumer must receive the excess back. Both the refund and delivery or mailing of the corrected disclosure have the consummation-based 60-day limit. August 2 plus 60 calendar days is October 1. Scope and exceptions: This applies to the stated good-faith excess, not every post-closing adjustment. Separate rules govern other disclosure corrections. Source: 1026.19(f)(2)(v) — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
B. Refund $210 and provide the corrected disclosure within 60 days after consummation. The stem identifies an excess subject to the good-faith tolerance cure, so the consumer must receive the excess back. Both the refund and delivery or mailing of the corrected disclosure have the consummation-based 60-day limit. August 2 plus 60 calendar days is October 1. Scope and exceptions: This applies to the stated good-faith excess, not every post-closing adjustment. Separate rules govern other disclosure corrections.
Why the Other Options Are Wrong
Option A: Refund at the next escrow analysis, which is when statements are issued
An escrow allocation does not substitute for the specified refund and corrected disclosure.
Option C: Nothing is owed once the loan has closed and the funds have disbursed
Discovering the overcharge after closing does not remove the cure obligation.
Option D: Refund within 30 days of the review, since that is when it was found
A 30-day period measured from internal review is not this provision’s deadline.
Exam Tip
Tolerance cure: refund plus corrected disclosure, using the consummation clock.
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