Answer:
Very few banks have ever encountered "negative odd days interest". I have seen it used by mortgage brokers, but it is fundamentally deceptive and I don't recommend using that trick. It used to look attractive on the old GFE and HUD-1, because the consumer thought he was getting something (they weren't), but it backfires on the new GFE, because there really is no such thing.
The status of a fee or credit on the GFE has nothing to do with the status of that amount for purposes of TILA. As even HUD admitted, they cannot interpret TILA and they cannot affect Regulation Z calculations.
First published on BankersOnline.com 7/12/10
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