In talking with The Federal Reserve Board, it was determined that a negative finance charge is not a charge but a credit and should not be used in calculating the APR. We have found a blog on <a href="http://www.bankersonline.com/lending/guru2010/gurus_ldng102510a.html">BankersOnline website</a> that states differently. Where can we find the information to back up the answer that was given on this blog?
If your HELOC does not have any activity or balance, do you still have to send a monthly statement to the customer?
Can a bank charge a fee that is more than the cost for a credit report?
A bank charges a $20 credit report fee for consumer real estate loans, but the fee is actually less. Should the amount that is in excess of the actual cost be considered a finance charge for Reg Z purposes? I realize there is a huge RESPA issue in this practice as well.
We close many mortgage loans that have a lump sum seller credit as part of the purchase agreement. Our regulator is telling us that any seller credits for charges that affect the finance charge on the TIL need to be excluded from the finance charge. Since we now lump sum seller credits with the 2010 reg changes, we don't specifically allocate the credit to a particular charge any longer. Many times our seller credits are less than the actual closing costs and prepaids total, so how are we supposed to decide which charges the seller is "technically" contributing towards to see if it's part of the prepaid finance charge for the TIL? We are confused...is the regulator correct?
We use title insurance companies to disburse funds on our refinances, as this is a requirement in order to obtain a closing protection letter from the title insurance company. In our itemization of title services on HUD line 1101, there is a wire fee for the outgoing payoff and also a disbursement fee. Are these considered prepaid finance charges or not?
We do in-house appraisals/evaluations. Is this a prepaid item? Should it be included in the origination charge on GFE and HUD1?
Where do we put the fee for tax return verification service (4506T) on the GFE and HUD? Is this fee a prepaid finance charge?
If there is a negative interim interest (credit) on the HUD-1, shouldn't that be included in the calculation of the finance charge to calculate the APR?
YSP was not considered APR impacting prior to RESPA Reform (built into the rate). With the change on the GFE to reflect YSP as a credit to the borrower, is this now APR impacting? We think is should be treated the same way it was prior to RESPA reform, but are concerned RESPAs change may have an unintended impact on Regulation Z.