Do I understand this correctly?

Assume the early disclosures were mailed on Monday, June 1. The closing is scheduled for Tuesday, June 9. On Monday, June 8, corrected disclosures are mailed. The closing cannot take place before Monday, June 15. In this example, the 7 day and the 3+3=6 day requirements have been met. Also, if this loan is subject to ROR, the customer won't have access to funds until June 19. Is that correct?

That works out correctly to me.

Originally Posted by Padric:
"if this loan is subject to ROR, the customer won't have access to funds until June 19. Is that correct?"


Okay, color me dense; but why June the 19th?

ROR is up at midnight on the 18th so the borrowers have access to funds on the 19th.

If that's not your question, what specifically is? The 7 and 3+3=6 have been thoroughly discussed in this thread already.

Sometimes it takes some of us longer to process things. Sorry.

Hey, don't worry about it, Jae. It is pretty CRAZY!

Thanks joker, makes me feel less dumb; I went back and refigured and found out what I was doing wrong.

I didn't mean to make you feel dumb. Look at some of my posts in this thread. I've no room to throw stones. I honestly tried to answer and then ask what specifically was hanging you up. No offense meant.

Yep.......we are all in this together. I don't think anyone intends to make anyone feel inadaquate. Now......if you want some abuse, head on over to the cooler and jump in on one of those meaty discussions.

(Keep in mind that Truf is already flusterrated! )

I didn't see where anyone answered this...what I understood from page 4, is that for consistency with this final rule, some of the other changes that were not going to be effective until 10/1/09 on primary dwellings will now be effective 7/30/09 for all applications received on or after 7/30/09: 1) early disclosures required for all dwelling-secured loans; 2) early disclosures must be given before consumer pay any fee except for credit report fee.

Others agree?

Thanks guys.......I'm frustrated too; I just turned 63 and I'm wondering if I have the mental power to keep! Can't retire...like everyone else my 401(k) went to heck in a hand-basket! My lenders could all be my children, and you know kids never listen to mom; I just want to make sure I right before I tell the "Because I said so!"

If I'm understanding you - October 1, 2009 will be the effective date for the higher priced loan if your bank chooses to do them. (Reg Z)

Flamingo - I think PJS & ageree that this is what we get from page 4. . . . The changes coming July 30 are:
1. Requirement for early disclosures in more situatinos
2. Requirement for early disclosures before any fee (except Cr Report) can be charged.

The changes in October are to match up with HMDA changes on rate spreads - The new High Prices Mortgage Loan catagory / advertising / not influence appraisers.

Direct Quote from pg 4
"To conform to the MDIA, certain regulatory changes that the Board adopted in July 2007 will become effective on July 30, 2009 (and not on Oct 1, 2009. . . ). These regulatory changes are: . . . [early disclosures] . . . early disclosure before fee] "

I attended a seminar on Friday provided by the Bankers' Compliance Group. Janet Bonnefin, a recognized expert in California on Regualtion Z stated that a new ETIL is NOT required unless the APR INCREASES beyond the tolerances.

omgosh, Dolly! Really??!!! Can I take this to the bank...examiners that is??

The rules that are effective July 30,2009, do they apply to fixed rate loans also and only to high priced loans (Section 32 loans)? The more I read the more confused I get!

Maybe this recap will help
July 30 - Is a Change, or Modification to portions of Reg Z
So they apply if Reg Z applies (Fixed or ARM doesn't matter)
- - Requires wording in early TIL - essentially saying you are not required to get the loan just because you received disclosures
- - Requires early disclosure in more situations (Refi ; Jr. Lien - Home Improv, Home Equity ; Second Home ; Vacation Home ...)
- - Matches up with RESPA - Can't charge a fee, other than for Credit Report, before early disclosure given
- - Adds 7 Business Day "Cooling Off" period (my terminology) from disclosure to the first day the loan can close
- - Requires Re-disclosure of TIL if the APR on early TIL becomes Out Of Tolerance
- - Adds 3 more Bus days from Re-disclosure before you can close AND another 3 days to make sure the applicant Receives the disclosure if mailed

In October it Adds To Reg Z (Changes to HMDA Rate Spread - so that these match up)
So they apply if the loan fits into this category
- - Creating a new category of loans between "Normal" and "Sec 32 - HOEPA" = The new HPML & part of this is rate spread calculation (different for Fixed and for ARMs)
- - Advertising Requirements
- - Can't coerce appraisers
- - Must Qualify borrowers and Document repayment ability from a 3rd Party Source

I THINK I got it all in there

Thanks. That really helped.

Thanks ktacMITCH!! And thanks Dolly!

I don't know, though...I still don't have the warm fuzzies over not re-diclosing if the APR was originally higher...

What is the tolerance on the APR?

Thanks for your help.

Me either, QCd'L. I respect Dolly's source but am hesitant to quote it to an examiner. We really need this to come down from the mountain in order to be able to rely on it.

I hate to disagree with the rep from California but in sec 226.19 (a)(2)(ii) (from the amendment) sates if the APR disclosed becomes inaccurate as describe in sec. 226.22

from sec. 226.22 of the regulation
(2) As a general rule, the annual percentage rate shall be considered accurate if it is not more than \1/8\ of 1 percentage point above or below the annual percentage rate determined in accordance with paragraph (a)(1)

But in their defense I believe if the Finance Charge is overstated and it does not affect the APR you would not have to redisclose.

I can't accept it either at this point in time. And if it does happen to be a finance charge error, but your APR is within tolerance (up or down)..it's still boils down to the APR tolerance levels. (unless I'm crazy, which is possible today)

My opinion for what its worth, would be if the APR disclosed in the ETIL is with in the 1/8 tolerance (either over or under) of the final, but your FC that was disclosed in the ETIL is outside of the tolerance allowable in 226.18 (d)(1) you could prepare a final TIL with correct FC for signing at settlement and still be in compliance.