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.
Regarding temporary financing or a bridge loan, it looks like RESPA does not apply but what about TILA?
Under new RESPA regs, is it ok to give a preapproval for a home loan with a property to be determined (TBD)?
We are totally confused on the subject of the recent Credit Card Act. We are understanding that the TILA amendments apply also to our HEQ Lines of credit. We now mail statements at month end with a due date ten days from the statement drop and allow fifteen extra days to make payment without a late fee or any reporting to a credit bureau. Are we in compliance or must we make our payment due date twenty-one days or more for mailing purposes, and then, by contract with the customer, still allow the grace period?
A purchase transaction was originally disclosed that excluded the MI premium. The error was system related, and was noticed prior to closing and was redisclosed to the borrower with the higher monthly PITI. Has the TILA violation (if there was one) been mitigated with the redisclosure?
I have heard that a new truth in lending pre-disclosure will be required next year, but I don't see anything about it in the regulation. Will this be required and if so, where is it stated?
The bank is thinking about conducting a mass mailing of debit cards to all customers who do not currently have a card. I understand that this may be done so long as we follow Section 205.5 of Reg E. The question is, can we exclude customers age 70 and over from the mailing? All of our accounts have overdraft coverage. I am concerned that due to that fact, the regulators might construe the coverage to be incidental credit, which could potentially mean an age discrimination issue per ECOA. I know that the bank can offer a product that benefits persons over age 62. Do you think excluding those over 70 (or 62) would be a benefit or a detriment? Do you think we can exclude the customers over age 70? Do you think we could use Regulation B's definition of "open-end credit" to get around the "incidental credit" issue?
When a loan is declined within three days of application, the early RESPA disclosures are not required. Are the Reg Z early disclosures required? I can't seem to find anything in the regulation that would exempt denied loans from the early TILA.
We do lot loans to consumers. I was told I needed to furnish the consumer with a Good Faith and Truth in Lending on a lot loan. Is this correct? Do RESPA & TILA apply to lot loans?