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#1149962 - 03/23/09 08:48 PM MDIA - New Text on TIL
Will B Offline
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Joined: Jul 2005
Posts: 318
The MDIA says we need to add the following language to the early disclosures, as well as in any corrected disclosures:

"You are not required to complete this agreement merely because you have received these disclosures or signed a loan application"

1. Does it need to be on the final TIL provided at closing?

2. Now that we must always give a corrected TIL at least 3 business days prior to closing is there any reason to give a final TIL at closing? (The current version of Reg Z only requires a Final TIL at closing if the early TIL is out of tolerance. After 7/30/09 this should never happen.)

Thanks.
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Lending Compliance
#1151219 - 03/25/09 05:54 PM Re: MDIA - New Text on TIL Will B
OldSchoolBanker Offline
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Joined: May 2005
Posts: 662
FL
I attented a conference call on this yesterday with Metavante Compliance and will share a few comments.

First - recognize the FRB has not issued the final ruling on this section of Reg Z to be effextive 7/30/09. It is due out any time, however the language shown above may be subject to change.

Regarding your items:
1. My impression is yes the language would also be in the final TIL.

2. If you provide a corrected TIL earlier in the process (say more than 3 days) and then when perfecting closing fees, the closing agent adds a prepaid finance charge item, you would most likely want a final TIL to reflect the most accurate info, even if it is within the allowable tolerance. We are seeing many last minute fees tacked on by closing agents that are PPFC items and can be critical.
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#1151955 - 03/26/09 03:49 PM Re: MDIA - New Text on TIL OldSchoolBanker
Will B Offline
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Joined: Jul 2005
Posts: 318
What if the prepaid finance charge added by the closing agent is enough to push the APR out of tolerance? In my reading of the Reg Z revisions, we'd need to give a new TIL and wait 3 more business days. Am I correct?
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#1155247 - 04/01/09 01:08 PM Re: MDIA - New Text on TIL Will B
Pickles Offline
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Posts: 275
Beach Bum, East Coast, USA
If the prepaid finance charge pushes the APR out of tolerance then "yes" you need to wait 3 more business days (person to person) or 6 business days if the corrected TIL is mailed.
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#1155257 - 04/01/09 01:11 PM Re: MDIA - New Text on TIL Pickles
Pickles Offline
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Joined: Apr 2006
Posts: 275
Beach Bum, East Coast, USA
Q: The reg states that we must retain copies of TILs for 24 months & we don't have to retain them if the loan is declined.. but what happens if a loan is approved and never closed? Do we still have to retain copies for 24 months?
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#1156443 - 04/02/09 03:25 PM Re: MDIA - New Text on TIL Pickles
ahou Offline
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Joined: Aug 2002
Posts: 3,094
The notice must be on the early disclosures (initial and if applicable, the redisclosure)
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