We were recently examined by state examiners. The loan review person was told that in cases where a consumer real estate loan is assessed a late fee after the 10 grace period and that customer comes in (for example on the 11th day) to refinance the loan, the bank is not allowed to charge a refinancing fee on top of the late fee.....She said that at the time of the exit it appeared that we were being told to look at 2009 and refund any that were done.....While the state was performing an examination, the feds were also performing their examination. The federal "guy" said "I know you've been told that but be careful....you could fall into discrimnatory issues"....As a compliance officer I was questioned by the review girl and I said "If you do it for real estate, the do it for ALL consumer loans...." The bank President wanted to wait until the final report was received. To this point nothing had been done....

The final report was just received and we've been ordered to refund all of the consumer real estate loans goverened by state law meeting the criteria above. It has been determined by our state examiners that we must look at all consumer real estate loans from 2006 (paid out and current). I'm now being questioned again.....I still feel that if we are going to refund consumer real estate, the we should apply this to all consumer loans.....

Any thoughts on this.....is this the right direction

refund all of the consumer real estate loans

Would this be the refinancing fee or the late fee?

It is my understanding that it would be the refinancing fee....

What discriminatory issues would the fed examiner be talking about......

I hate to call the feds, but I certainly don't want any "suspicions" arising by only refunding real estate.....Do you think that is what he meant
.....

This is a State law issue and maybe a different law applies to consumer loans verses real estate loans. You should be talking to your attorney.

I see no discriminatory issue here however.