MDIA - New Set of Disclosures

Question:

While doing some loan compliance reviews, it was discovered that a loan subject to the new MDIA rules was out of tolerance on the APR and the loan closed without providing the borrower with any new disclosures. Would it be prudent (or required) now, even though the loan closed to provide the borrower with a new set of disclosures, or just leave it as it is? The final APR was actually lower than what was disclosed on the preliminary.

Answer:

You can't fix it now. Document the issue and move on. There is quite a bit of controversy about a lower APR not really being out of tolerance. We're waiting for official guidance from the Federal Reserve on this issue.

First published on BankersOnline.com 12/07/09