Can you give me a list of fees that should be included as a prepaid finance charge on the TIL?
On closed end indirect auto loans, we charge a $30.00 administration fee that the dealer includes in the total administration fees. We include the total administration fees on the contract in the amount financed. When the deal is funded, we take the $30.00 fee out of the dealer's check. Are we in compliance with Reg Z, or should the fee be shown as a prepaid finance charge?
We do not charge origination fees on residential real estate loans. We have always charged a set fee that has been called a "Loan Fee" which has always been considered a finance charge affecting the APR calculation. Where and how should we disclose this on the new RESPA forms?
With MDIA, the regulation states in section 226.17 that early disclosures are required if the APR changes by more than 1/8%. Does the word "varies" indicate upward only or both upward and downward movement in APR?
We have never charged a document preparation fee in the past, but are thinking of doing so in the future. What are the compliance guidelines that go along with a document preparation fee? Are there any disclosures involved?
Currently we are redisclosing when the APR is out of tolerance, either the .125 for fixed rate loans or .25 for adjustable rate loans (either up or down). Please explain to me when we have overdisclosed and are not required to send a new TIL?
What fees and or charges affect the APR on a closed end mortgage loan (fixed rate)?
We want to start charging our customers for credit reports and flood determinations. Is it ok to only charge customers that we actually close the loan with or would this be discriminatory? We don't want to charge the credit report fee at application. We would rather wait until the loan is closed before the fee is imposed on the customer, therefore if a denial is made, the denied customers would not have the fee imposed on them.
Reg Z states that on residential construction loans inspection fees must be included in the finance charges. We do include inspection fees for a reasonable number such as say five inspections. However, corporate compliance recently informed me that we may charge for inspections beyond the reasonable number and that any subsequent inspections that may be needed once the original five (or whatever the reasonable number is) will be included in the loan agreement as a condition of that agreement and that makes it permissible. The defense is that it is unknown at the time of closing whether additional inspections will be needed. The TIL should show the inspection fee as an estimate for this reason. I don't think we should charge the customer for these subsequent inspections and simply including a statement that there may be additional charges in the terms of the agreement does not relieve us from including all inspection fees in the finance charge. I also think the estimate is for a variance in inspection fees for whatever reason and not for additional inspections. Could you please help clarify this issue?
If our institution charges an appraisal review fee and the review appraiser is an employee of the bank, is that charge considered a prepaid finance charge for Reg Z?