Skip to content
GeoDataVision
Page 6 of 36 1 2 4 5 6 7 8 35 36
Thread Options
#1186762 - 05/19/09 08:46 PM Re: New Reg Z Final Rule - Just Published Jerod Moyer
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Totally Confused with New Reg Z. This is the why we do our Real Estate Loans. Payments are amortized over 15 years to come up with the customers monthly payments. Loan is setup on these payments for two years. At maturity loan is extended for an additional two years same payment usually same interest rate this continues until loan is paid in full. For regulation purposes is this consider a regular transaction or irregular transaction concerning the variance in your annual percentage rate (-/+ 1/4 of 1 percent)or (-/+ 1/8 of 1 percent)

Return to Top
Lending Compliance
#1187080 - 05/20/09 02:14 PM Re: New Reg Z Final Rule - Just Published theloanbug
QueenBB Offline
100 Club
Joined: Jan 2006
Posts: 190
TX
Thanks KTACMitch! You don't know how long I have wanted to see everything in one place.
....and the business days for delivering early disclosures is business days substantially open for business......
while the "waiting" business days is not Sunday and certain legal holidays......Is that correct?

Return to Top
#1187139 - 05/20/09 02:55 PM Re: New Reg Z Final Rule - Just Published QueenBB
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
yes
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1187548 - 05/20/09 06:03 PM Reg. Z amendments - accuracy tolerance
VRV Offline
100 Club
Joined: Jun 2007
Posts: 173
My question relates to the new Reg. Z amendments scheduled to become effective on July 30, 2009. With respect to the need for a corrected early TIL disclosure--I know the 1/4% for regular transactions and the 1/8% tolerance for irregular, but am still unclear whether or not a new corrected early TIL is required if the final APR is LESS THAN the previously disclosed APR. In other words, if the APR was originally overstated (regardless of how much) from what the final APR ends up being, is a corrected TIL disclosure still required to be given 3 business days before closing?

Also, if the only irregularity about a balloon loan is the final payment, am I correct that that is still a regular transaction?

Thanks.

Return to Top
#1187558 - 05/20/09 06:12 PM Re: New Reg Z Final Rule - Just Published 123comp
Karen A. Luttrell Offline
Member
Karen A. Luttrell
Joined: Dec 2007
Posts: 91
Central NY
Ok, I have another question sorta related to this topic....if we begin collecting a commitment fee with a signed commitment letter, is this considered a “prepaid expense” that will effect my APR?
_________________________



Return to Top
#1187598 - 05/20/09 06:32 PM Re: New Reg Z Final Rule - Just Published Karen A. Luttrell
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
Yes. It's a fee associated with the credit transaction and there would be no comparable fee in a similar cash transaction.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1187604 - 05/20/09 06:39 PM Re: New Reg Z Final Rule - Just Published Dan Persfull
Karen A. Luttrell Offline
Member
Karen A. Luttrell
Joined: Dec 2007
Posts: 91
Central NY
Thanks Dan...you are always a big help!!
_________________________



Return to Top
#1187606 - 05/20/09 06:41 PM Re: New Reg Z Final Rule - Just Published Karen A. Luttrell
Karen A. Luttrell Offline
Member
Karen A. Luttrell
Joined: Dec 2007
Posts: 91
Central NY
Another thought....what if we started charging a processing fee at closing instead?
_________________________



Return to Top
#1187627 - 05/20/09 06:53 PM Re: New Reg Z Final Rule - Just Published Karen A. Luttrell
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
Still a pre-paid finance charge that affects the APR.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1187821 - 05/20/09 08:30 PM Re: Reg. Z amendments - accuracy tolerance VRV
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,349
Here's the thread with all the questions and answers on this topic. If you don't find your answer there, please feel free to restate your question.

Just trying to keep all this together in one place so we all learn together.

Return to Top
#1188255 - 05/21/09 03:27 PM Re: Reg. Z amendments - accuracy tolerance Truffle Royale
VRV Offline
100 Club
Joined: Jun 2007
Posts: 173
Thanks for the link, Truffle. Actually, I had already read that thread and still wasn't positive that I know where we had come out on this. It appeared as though several posters believed that an overstated APR (outside of 1/4% or 1/8%) would necessitate corrected disclosures. But someone quoted a knowledgeable source as saying that overstated APRs did not trigger the need for corrected disclosure, so I was interested in knowing what our resident experts on here think.

If we have to provide corrected disclosures for overstated APRs, it is going to have a major impact on our business. It is not unusual for us to discover at closing that the applicant actually qualifies for a 1/4% discount on their rate due to some factor we had not realized previously, or the applicant decides at closing to open a checking account (which gives them a 1/4% discount on their loan rate) or they want to sign up for ACH payments on their loan (which also qualifies them for a 1/4% discount on their loan rate).

If the new rule requires corrected disclosure for overstated APRs, our customers would have to scratch the closing that day and come back in 3 more days in order to get the lower rate. So I'm just looking for some conclusive guidance on this issue. It's unclear to me from reading the amendments what the correct answer is.

I also wanted to confirm that if the only irregularity on a balloon is the final large payment, that it is still considered a regular transaction, and not an irregular one. Thanks.

Return to Top
#1189240 - 05/22/09 03:50 PM Re: Reg. Z amendments - accuracy tolerance VRV
Tigg Offline
Power Poster
Tigg
Joined: Jan 2008
Posts: 6,389
Looking for My Happy Place....
I've probably read this thread a hundred times already and perhaps I missed this.....

Is there a timing difference for when you can charge a fee (other than the credit report) if you mail the ETIL as opposed to providing it face to face?

My head, stomach and eyes all hurt now................
_________________________
What would you do if you knew you could not fail? ~ Dr. R Schuller

My opinion only.

Return to Top
#1189254 - 05/22/09 04:01 PM Re: Reg. Z amendments - accuracy tolerance Tigg
ahou Offline
Power Poster
ahou
Joined: Aug 2002
Posts: 3,094
If you give disclosure in person, you can chg fee any time after delivery. If you mail, you can impose fee after the consumer receives the disclosure, in any case after midnight on the 3rd business day following mailing of the disclosures.
_________________________
Opinions are my own and not of my employer.

Return to Top
#1189269 - 05/22/09 04:13 PM Re: Reg. Z amendments - accuracy tolerance ahou
Tigg Offline
Power Poster
Tigg
Joined: Jan 2008
Posts: 6,389
Looking for My Happy Place....
Thanks, ahou. That's what I thought.
_________________________
What would you do if you knew you could not fail? ~ Dr. R Schuller

My opinion only.

Return to Top
#1189433 - 05/22/09 06:25 PM Re: Reg. Z amendments - accuracy tolerance VRV
Bill S Offline
Junior Member
Bill S
Joined: Feb 2003
Posts: 35
OH
VRV --

Second question first...Footnote 46 to section 226.22(a)(3) states that "an irregular transaction is one that includes one or more of the following features:...irregular payment amounts (other than an irregular first period or an irregular first or final payment)." Since the balloon (final) payment is the only irregularity, such a loan is not "irregular" for APR tolerance purposes.

Now, the tough question...My first reaction was to think that an overstated APR on a mortgage loan is not considered inaccurate. So, I went looking for the proof.

All I can find is section 226.22(a)(5)(ii), which gives us a little leeway for an APR that is outside the usual APR tolerance on the high side, it is caused by an overstated finance charge, and the APR is closer to the "actual" APR than an overstated APR that would be considered accurate under 226.22(a)(4). So, an APR that falls within this upside window is not "inaccurate" and a later lowering does not "correct" an "inaccurate" APR, so no corrected estimated TIL would be required.

And a note to everyone on this thread -- Don't forget that your mortgage loan folks aren't the only ones who have to be up to speed on these changes by July 30th. The tougher part of your transition/implementation will probably be getting your consumer loan people/systems/etc. up and running on this new (to them) world of early estimated disclosures, never mind learning two definitions of "business day" and all the rest. Maybe consumer folks should refer anyone wanting to do a dwelling-secured loan to the mortgage area.

Good luck to all who enter here.
_________________________
William J. Showalter, CRCM, CRP

Opinions expressed are mine only & are not legal advice.

Return to Top
#1189840 - 05/26/09 02:36 PM Re: Reg. Z amendments - accuracy tolerance Bill S
VRV Offline
100 Club
Joined: Jun 2007
Posts: 173
Bill, thanks for confirming my thoughts on the balloon payment. I thought I was correct, but really appreciate the confirmation.

And I especially want to thank you for your thoughts on the overstated APR question. This is obviously a question that many of us are struggling with, and I very much appreciate your taking the time to provide your insight. That is very helpful.

Return to Top
#1189885 - 05/26/09 03:31 PM Re: New Reg Z Final Rule - Just Published swiggles
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
I went to a seminar Friday hosted by Jack H. It was very good, and scared the h*ll out of me. This is a monster.
_________________________
My Opinions Only

Return to Top
#1190300 - 05/26/09 09:00 PM Re: New Reg Z Final Rule - Just Published swiggles
Jerseygirl Offline
Platinum Poster
Joined: Apr 2005
Posts: 684
Jersey Shore
I didn't see it but does the regulation provide any allowance for the consumer to waive the 7 day or 3/6 days for the final TIL? Similar to waiving R of R in an emergency.

Return to Top
#1190304 - 05/26/09 09:04 PM Re: New Reg Z Final Rule - Just Published Jerseygirl
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
Exactly like ROR - rarely, rarely, rarely used.
_________________________
My Opinions Only

Return to Top
#1190329 - 05/26/09 10:20 PM Re: New Reg Z Final Rule - Just Published Skittles
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,503
On the Net
Under a "bona fide financial emergency" which I'd still like a definition on. To date I've never had it requested, but if it isn't a real emergency, and not poor prior planning, my conservative judgment always says I'll have an answer for you in three business days.

With the increased reliance on mailing disclosures, I worry too what will happen if Saturday mail is stopped as the USPO wants.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#1190341 - 05/26/09 10:48 PM Re: New Reg Z Final Rule - Just Published Skittles
ktac MITCH Offline
Diamond Poster
ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
Originally Posted By: Duchess Skittles
Exactly like ROR - rarely, rarely, rarely used.


I agree; for training I plan to ask the lenders (with a total of XX Years experience togeter) how many times have they seen ROR waived due to Bonafied Financial Emergency ?
This should be just as rare.
_________________________
My opinions are just that, and might be worth what you paid for them.

Return to Top
#1190437 - 05/27/09 01:19 PM Re: New Reg Z Final Rule - Just Published Andy_Z
Tigg Offline
Power Poster
Tigg
Joined: Jan 2008
Posts: 6,389
Looking for My Happy Place....
Originally Posted By: Andy Z
With the increased reliance on mailing disclosures, I worry too what will happen if Saturday mail is stopped as the USPO wants.


I forgot about this! One of our branches is in a city where they will be discontinuing Saturday deliver in the next couple of weeks. Can we still use the precise definition for that branch?
_________________________
What would you do if you knew you could not fail? ~ Dr. R Schuller

My opinion only.

Return to Top
#1190664 - 05/27/09 02:55 PM Re: New Reg Z Final Rule - Just Published Tigg
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
IMO, yes. The definition has never depended on the post office being open, that was just a rule of thumb people used.

As an example. If July 4th fell on Sunday and the Post Office closed on Monday July 5th to observe the holiday you still would count Monday as a rescission day even though the post office is closed becuase Monday the 5th is not a designated holiday.

Until they amend the regulation Saturdays will be a rescission day whether the post office is open or not.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1190720 - 05/27/09 03:18 PM Re: New Reg Z Final Rule - Just Published Dan Persfull
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
By "consummation" are they referring to closing or funding?

Return to Top
#1190724 - 05/27/09 03:22 PM Re: New Reg Z Final Rule - Just Published Ninky
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
Closing
_________________________
My Opinions Only

Return to Top
Page 6 of 36 1 2 4 5 6 7 8 35 36

Moderator:  Andy_Z