Truth in Lending Sample Comment Letter

[Date]
William W. Wiles           RE: Docket No. R-0942
Secretary
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, N.W.
Washington, D.C. 20551

Dear Mr. Wiles:

Thank you for the opportunity to comment on the proposed revisions to the official staff commentary to Regulation Z (Truth in Lending).

I am the compliance manager for [_______]. Our bank is [asset size] and has [#] employees. We are located in [town, county, city or cities] and have [#] branches. [Add relevant details about holding company, number of banks in system, your regulator, employee stability or turn-over, etc.]

[Include substantive comments on the proposal that are of most concern to you or that will provide compliance relief. For example:

Per Diem Interest
State whether your bank handles closings through settlement agents or attorneys and explain whether the bank or the agent prepares disclosures. If you do use settlement agents, state that this paragraph should be adopted as proposed because it will eliminate the need to prepare disclosures more than once. You may also want to further support the proposal with statements such as: "The proposed commentary provides an explanation that will be useful in training. In particular, the example in 17(f)-1 provides clear instruction on how to treat different finance charge questions in preparing disclosures and in a compliance audit."

With respect to high cost and reverse mortgages, state whether loans that could meet the definition of high cost mortgages are closed through third party settlement agents, or are subject to delays in closing that would affect per diem interest. Use this information to support including a clarification of the per diem interest rule to Section 226.31(d)(3). You might also point out that without a similar clarification in this part, a plaintiff might argue that the omission of the clarification was intentional and that in fact the section in Subpart E does not have the same broad reach as in Subpart C.

RESPA disclosures and finance charges
Describe the technique your bank presently uses to identify finance charges and prepare Truth in Lending calculations. If numbers are taken from the HUD-1, describe how this occurs. State your support (or opposition) to the proposed commentary revision and briefly explain why.

Describe how your bank makes initial escrow disclosures. State whether the proposal would affect how you prepare Truth in Lending calculations for fees that are escrowed. Support (or oppose) the proposed commentary revision and briefly explain why.]

If you or Board staff have any questions about this comment letter, or would like more information relating to the commentary proposal, you can reach me at [phone no.] I would be pleased to talk with you.

Sincerely,

Regulatory Compliance Manager

Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 18 & 19, 12/96