02/01/2004
11/01/2003
We are about to enter a period of reporting information on high cost loans on the HMDA LAR. The fun begins on January 1, 2004 - actually the first business day after that date.
10/06/2003
Do you have, or know where I can download, a "flow chart" which shows the coverage for Regulation Z?
08/18/2003
I need clarification on a age old rescission question. Wife is borrower on loan, she lives in home, ownership is in both the wife's and husband's names. Husband does not live in the residence (he has his own principal residence). Husband is not on the note, however he did sign the security agreement. Would the husband have the right to rescind? I am a little confused because I have seen a Reg Z article that states "Each person with an ownership interest has the right to rescind even if all the owners don't live in the house."
08/04/2003
On the TruthInLending Disclosure that is signed at closing on a mortgage, is there a tolerance amount that is acceptable in case of any computing errors? If any errors are found, should a new TIL be signed?
06/23/2003
I understand that Amount Financed in TIL disclosures equals the note amount less prepaid finance charges. Is Amount Financed a meaningful number, or is it just a disclosure with no meaning other than for comparison of loans with different lenders? For example, is the amount financed the amount we actually accrue interest against, or is that the note amount which includes prepaid fees?
06/09/2003
An OCC examiner recently cited our bank for not disclosing a coupon book company as a required provider of settlement services on the Good Faith Estimate form (which has the required provider information at the bottom of the form). I was under the impression that a financial institution should disclose only those service provider companies that were required in the origination, processing, or funding of the loan. The coupon book is required for the servicing of the loan, which, in essence, is not a settlement service. The coupon book fee that our bank charges is disclosed as a prepaid finance charge under TILA. It is a fee that our bank charges to offset the cost of the production of the coupon book for installment loans. This fee could very well be incorporated into our loan fee with an increase for the cost of the coupon book, but we choose to charge the customer separately for a loan fee and a coupon book fee. The coupon book fee is $10.00, and we disclose the fee on the Good Faith Estimate and the HUD1 or HUD1A, since all costs to the borrower must be disclosed. Should we be itemizing the coupon book company as a required provider?
02/17/2003
Can we require that a borrower obtain credit life or disability insurance as a condition of a loan subject to TILA? If we can, I assume we must include the premium in the finance charge and adjust our TILA disclosure so that it does not state "Credit insurance is not required."
02/01/2003
The Comptroller of the Currency has put forward a revolutionary idea: consumer disclosures that are easy to prepare and understandable to consumers. What a novel concept.
12/01/2002
We all know what happens when the APR or finance charge is under-disclosed: restitution. What happens when the APR or finance charge is over-disclosed? Basically, nothing.