Grace Period Must Be 15 Days or More(10380) FAIL
Under the New Jersey Home Ownership Security Act, a late fee on a home loan may not be charged unless the payment is past due for 15 days or more. (N.J.S.A. 46:10B-25.4.d)
POSSIBLE RESOLUTIONS (each scenario is further defined below):
ISSUE
Found on Page 4 of the Closing Disclosure, information is missing under the Late Payment section under Loan Disclosures. This must be completed in its entirety.
RESOLUTION
The “Get Late Fee” button automatically populates the late fee information based on State regulations, Federal regulations, and Investor guidelines.
The following fields must be completed in order for the “Get Late Fee” button to automatically populate the correct late fee information (based on the internal matrix):
□ Loan Type (field ID 1172)
□ State (field ID 14)
□ Total Loan Amount (field ID 2)
□ Lien Position (field ID 420)
□ Monthly Payment (field ID 5)
Once the “Get Late Fee” button is selected, the following Fields will be automatically completed if they are applicable for the loan scenario.
□ Late Fee Days (field ID 672)
□ Late Fee Percentage (field ID 674)
□ Basis or Description of Payment (field ID 1719)
□ Late Fee Minimum (field ID 2831)
□ Late Fee Maximum (field ID 2832)
Clients can create Business Rules to restrict user access and/or automatically populate the “Late Fee” information based on their own internal guidelines.
Clients may request to modify the late charge information from the “Get Late Fee” button so it is specific to their Client ID. A case to the Docs Team would be required.
Client must have an EDS or Closing Document License to override the “Get Late Fee” button functionality.
Very Important: If the “Get Late Fee” button is overridden, it will affect the clients rep and warrants and they will also be required to notify us of any updates should the regulations change.
