If the interest rate disclosed in a promissory note is incorrect (it is lower than what is actually being charged), is that a Reg Z problem? What if the TILA disclosure is within tolerance and is considered correct, could this then be an issue with UDAAP?
I am wondering what the possible penalties to a lender are for non-compliance or improper execution of Right of Rescission.
RESPA/TIL question: We have a residential purchase loan where the attorney who closed the loan did not (also) provide the title insurance policy. FDIC states we have a TIL violation b/c we did not disclose the attorney's fee as a prepaid finance charge. We are not familiar with this being a part of TIL. Your thoughts please.
Regarding overdraft repayment plans: Reg Z disclosures will be triggered if the loan is payable by written agreement in more than 4 installments. So, as long as the written agreement says 4 or less payments, may the consumer make bi-weekly payments totalling 8 payments until paid in full and still be compliant without giving Reg Z disclosures?
Have you heard of the obvious error rule? The FDIC has recently completed a compliance exam and mentioned the obvious error rule in relation to the APR calculation on open-end credit.
Are banks permitted to charge a fee to customers or non customers to withdraw funds using their Visa debit card (inside the bank not by ATM)?
We have just had a compliance exam and they said that we have included the document preparation fee as a prepaid finance charge. We are listing it on the GFE in origination fees. Is this not right.? If not, where do you put it on the GFE?
Our open end consumer loan agreements (demand deposit loans) read: a finance charge will be assessed on the daily unpaid loan balance and I believe it should read interest charge will be assessed. Which is correct to be in compliance with regulation?
If part of line 801 "Origination Fee" is broken out as Doc Prep Fee, can that portion be excluded from the Finance Charge for TILA?
On the new Truth in Lending section under prepayment penalties, are we required under Reg Z to refund a part of the finance charge (like origination) if a loan is paid off early? Is it a state/regulator specific requirement? Or can each individual bank decide if they want to refund or not?