The Late Title Premium: TRID Redisclosure and Tolerance Rescue
Marcus and Lena Ott are scheduled to close a $385,000 purchase at 2:00 p.m. Thursday. Their rate lock on the 30-year conventional loan expires Wednesday at midnight, and there is no federal holiday this week. You emailed the Closing Disclosure Monday at 9:00 a.m. At 4:30 p.m. Tuesday the settlement agent tells you the lender's title policy will cost $2,350, not the $1,450 shown on the CD, because the seller's prior owner's policy cannot be reissued at the discounted rate. Lender's title insurance, recording fees, and the survey total $2,100 on the current CD, all within the 10% cumulative tolerance category. A lock extension costs $475 per week. Marcus asks whether he can sign something so you can "close Thursday and fix the paperwork later." The listing agent is also pressing for Thursday because the seller's replacement home closes Friday.
1. What redisclosure steps are required after the title premium changes, when is the earliest the loan can consummate, and who should absorb the $475 lock extension?
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Redisclosure. Any change to a disclosed charge requires a corrected Closing Disclosure delivered before consummation (12 C.F.R. § 1026.19(f)(2)(i)). A new three-business-day waiting period is triggered only if the corrected CD makes the APR inaccurate beyond the accuracy tolerance (1/8 of a percentage point for a regular transaction) or changes a loan term such as adding a prepayment penalty or changing the loan product. A $900 premium on a $385,000 loan will normally move the APR by far less than 1/8 point, so the corrected CD must be received before consummation, but the clock does not necessarily restart. If, after running the actual numbers, the APR moves beyond the tolerance, the corrected CD delivered Wednesday is deemed received Monday (Thursday, Friday, and Saturday each count as business days for this rule), and Thursday closing is impossible.
Tolerance. The $2,100 category permits a 10% increase, or $210. The actual increase is $900, an overage of $690. Either the creditor documents a valid changed circumstance (a written, dated statement from the title company showing the reissue problem was not reasonably knowable when the LE was issued, with a revised LE issued within three business days of learning of it), or it cures $690 to the borrower within 60 days of consummation. A verbal explanation is not documentation.
Lock extension. The closing was already scheduled past the lock expiration, which is a scheduling error. Because the delay arises from the lender and settlement agent's late discovery and not borrower delay, the lender should absorb the $475 and confirm the extension in writing. Passing it to the borrower invites a tolerance and UDAAP complaint.
2. Marcus offers to sign a waiver so the file can close Thursday. How do you respond?
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Decline, and do not present a pre-printed waiver for signature. The waiting period can be waived only for a bona fide personal financial emergency under § 1026.19(f)(2)(v): the consumer must give a dated written statement, in their own words, describing the specific emergency, signed by every consumer on the loan. The creditor may not supply a form or coach the language, and it must retain the statement.
A rate lock expiration and a seller's moving schedule are transaction logistics, not personal financial emergencies. Neither qualifies. Telling the borrower to sign a boilerplate waiver to "fix the paperwork later" would also be a disclosure violation independent of the timing question, and it exposes the loan officer to state and federal scrutiny. The correct script is factual: the corrected CD must be received, the title premium is going up, here is whether the lender is curing any of it, and here is the earliest permissible closing date. If Marcus needs to close sooner for a genuine emergency such as a documented medical or housing-loss deadline, you escalate to compliance and let them determine whether the standard is actually met rather than deciding it yourself.