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#1198181 - 06/09/09 07:41 PM Re: New Reg Z Final Rule - Just Published Compliance4521
RR Joker Offline
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If they can prove someone is waiting to catch the bait, then I would think you would have a good case for waiver.

It's hard to call that a "financial emergency"...however, it is an emergency of sorts. I feel you would need definite proof, however, otherwise, that will become a "game".
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Lending Compliance
#1198333 - 06/09/09 09:09 PM Re: New Reg Z Final Rule - Just Published RR Joker
Truffle Royale Offline

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Variance must be handwritten and documented by the borrower. If the seller can produce an otp that shows a named buyer ready to go...not just ready to start getting a loan...if the loan doesn't close on x date, I'd be willing to go to bat with examiners if they pulled this file.

If, however, the sellers are just pushing because it's inconvenient for them, then say no. Often as not, the sellers aren't going to want to loose the sale by throwing a tantrum of this sort.

This points to what I think is going to be the biggest broohaha of MDIA...timing. You can loose sales and rate locks and watch fees skyrocket in response. How is this helping the borrower?

My other concern is that the lender can start charging after midnight on the third day. There's no provision for notification from the borrower that they're through shopping around so your bank should proceed with ordering the appraisal, etc. If you start but the borrower doesn't notify you, then what?

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#1198400 - 06/09/09 10:40 PM Re: New Reg Z Final Rule - Just Published Truffle Royale
ktac MITCH Offline
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ktac MITCH
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Giant side of TX
Originally Posted By: Truffle Royale

This points to what I think is going to be the biggest broohaha of MDIA...timing. You can loose sales and rate locks and watch fees skyrocket in response. How is this helping the borrower?

PREACH IT SISTER
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#1199261 - 06/10/09 08:59 PM Re: New Reg Z Final Rule - Just Published stella
Moman Offline
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WA
Regarding the final TIL - the APR could be in compliance, so the 3-day re-disclosure would be unnecessary, but prepaid finance charges might be outside the $100/$200 limits (closing one day from the scheduled date of closing could possibly throw things out of tolerance), requiring re-disclosure at consummation (signing). That would be a reason for providing a final TIL.

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#1199465 - 06/11/09 01:35 PM Re: New Reg Z Final Rule - Just Published Moman
bankchick Offline
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Posts: 61
Oklahoma
I've diligently read this thread each day as well as read the BankersCompliance newsletter and the BOL training CD. I have conflicting dates for the corrected eTIL. One illustration shows you can close ON the 6th day after mailing and another shows you must wait until AFTER the 6th day.

I love the calendar on the tools page but it shows AFTER. Does anyone have an absolute?
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#1199511 - 06/11/09 02:15 PM Re: New Reg Z Final Rule - Just Published bankchick
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The corrected disclosure uses the term AFTER. It's not worded the same way as the initial seven day which says you can close ON the 7th day.

both use the more "precise" definition of business day.
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#1200079 - 06/11/09 09:07 PM Re: New Reg Z Final Rule - Just Published RR Joker
Burgess Offline
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Are we open on Saturday?
We take deposits. We can take an application.
May not be able to close a loan, depending on who is working.
Don't disburse funds.

I don't think we are open on saturday for substancially all our business services. What do you think (this will not go over well if i tell management that under MDIA we can't count saturdays.
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#1200121 - 06/11/09 09:46 PM Re: New Reg Z Final Rule - Just Published Burgess
swiggles Offline
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Originally Posted By: burgess
Are we open on Saturday?
We take deposits. We can take an application.
May not be able to close a loan, depending on who is working.
Don't disburse funds.

I don't think we are open on saturday for substancially all our business services. What do you think (this will not go over well if i tell management that under MDIA we can't count saturdays.


Saturday would not be a business day for your bank......in my opinion.
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#1200161 - 06/11/09 10:39 PM Re: New Reg Z Final Rule - Just Published swiggles
Tesla Offline
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OK - I put a Powerpoint together on this and I would love to have someone check it and see if I have everything right. Please PM me if you have a few minutes and can review this. smile
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#1200181 - 06/12/09 02:19 AM Re: New Reg Z Final Rule - Just Published Tesla
Many Hats Offline
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Posts: 915
Orlando, FL
Originally Posted By: SkiDoo
OK - I put a Powerpoint together on this and I would love to have someone check it and see if I have everything right. Please PM me if you have a few minutes and can review this. smile


Your PM limit is maxed (can't imagine why - it probably took about a second to get 1000 PM's! :-), so I was unable to PM you, but I would love to see it! Our compliance consultant will be at our office tomorrow and he could take a look at it as well.

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#1200498 - 06/12/09 04:51 PM Re: New Reg Z Final Rule - Just Published Many Hats
Tesla Offline
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That's funny! I was thinking it was so weird no one was interested in viewing it. I haven't received a single PM. I will have to check it out. Sorry!

OK - I think I corrected the problem, so if you are still interested, please PM me. I want to be sure I have this right and, if you like it you can use it at your shop. Maybe it will become a BOL tool????? smile
Last edited by SkiDoo; 06/12/09 06:20 PM. Reason: Corrected problem
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#1200691 - 06/12/09 07:11 PM Re: New Reg Z Final Rule - Just Published bankchick
David Dickinson Offline
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Central City, NE
Originally Posted By: bankchick
I've diligently read this thread each day as well as read the BankersCompliance newsletter and the BOL training CD. I have conflicting dates for the corrected eTIL. One illustration shows you can close ON the 6th day after mailing and another shows you must wait until AFTER the 6th day.

I love the calendar on the tools page but it shows AFTER. Does anyone have an absolute?

You can close the loan ON the 7th business day following deliver of the P-TIL or ON the 3rd business day following delivery of a corrected P-TIL.

I will be co-presenting a webinar next Thursday on the MDIA and 10/1/09 TIL changes. We have designed numerous calendars to illustrate the timing issues. You can find more info on the webinar here:
http://calendar.bollearningconnect.com/main.php?view=event&eventid=1242644384260
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#1200758 - 06/12/09 07:39 PM Re: New Reg Z Final Rule - Just Published swiggles
RR Joker Offline
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Originally Posted By: swiggles
Originally Posted By: burgess
Are we open on Saturday?
We take deposits. We can take an application.
May not be able to close a loan, depending on who is working.
Don't disburse funds.

I don't think we are open on saturday for substancially all our business services. What do you think (this will not go over well if i tell management that under MDIA we can't count saturdays.


Saturday would not be a business day for your bank......in my opinion.


The more "precise" business day definition COUNTS Saturdays...same as recission does.
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#1200766 - 06/12/09 07:40 PM Re: New Reg Z Final Rule - Just Published RR Joker
RR Joker Offline
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Quote:
You can close the loan ON the 7th business day following deliver of the P-TIL or ON the 3rd business day following delivery of a corrected P-TIL.


David, where does it say ON the 3rd day in the final rule? It clarifies this for the 7 day wait, but I only find the word "after" the 3rd business day for the corrected disclosure. Please point me to this...thanks!
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#1200826 - 06/12/09 08:05 PM Re: New Reg Z Final Rule - Just Published RR Joker
David Dickinson Offline
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Central City, NE
The commentary to §229.19(a)(2)(ii) - comment #1. This gives an example of a corrected P-TIL being received by the consumer on Monday, June 8th and closing the loan on Thursday, June 11th - ON the 3rd business day.

Comment #3 (to this same section): "Consummation may occur anytime on the 3rd business day following delivery."
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#1200828 - 06/12/09 08:07 PM Re: New Reg Z Final Rule - Just Published RR Joker
banjo Offline
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I don't think the Fed did a very good job of clarifying this; however, take a look at Section 226.19(a)(2)(ii)-1 of the Commentary. It gives the example of loan scheduled to be consummated on June 11 where the Early TIL showed an APR of 7.00%. It states "On Thursday, June 11, the annual percentage rate will be 7.15%. The creditor must make corrected disclosures so that the consumer receives them on or before Monday, June 8." Thursday, June 11 would be on the 3rd business day after the customer received their disclosures.

(However, I don't think we can charge fees, except a credit report fee, until after 3 business days from mailing the original Early TIL.)

A different question I had was are Bridge Loans exempt from the new Early TIL provisions? I am thinking that they are exempt from RESPA and therefore exempt from these Reg Z provisions. Can anyone confirm or dispute this? Thank you.

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#1200831 - 06/12/09 08:09 PM Re: New Reg Z Final Rule - Just Published banjo
David Dickinson Offline
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Central City, NE
Here's a link to the new Reg Z requirements:
http://www.bankersonline.com/regs/226/suppi226-19.html
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#1201066 - 06/15/09 01:08 PM Re: New Reg Z Final Rule - Just Published David Dickinson
RR Joker Offline
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Thanks David and Banjo.
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#1201360 - 06/15/09 07:00 PM Re: New Reg Z Final Rule - Just Published Compliance4521
John Burnett Offline
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The 7-day period from preliminary TIL disclosures can be waived under limited circumstances. See the post that follows.
Last edited by John Burnett; 06/16/09 09:27 PM. Reason: revise the answer.
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#1201578 - 06/16/09 12:27 PM Re: New Reg Z Final Rule - Just Published John Burnett
lscy Offline
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Joined: Mar 2007
Posts: 33
John,

I'm confused.

226.19(a)(3)states "Consumer’s waiver of waiting period before consummation. If the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may modify or waive the seven-business-day waiting period or the three-business-day waiting period required by paragraph (a)(2) of this section, after receiving the disclosures required by § 226.18."

Please let us know where the regulation states the 7 and 3 day waiting periods cannot be waived.

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#1201795 - 06/16/09 03:42 PM Re: New Reg Z Final Rule - Just Published lscy
OnTheEdge Offline
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SmallTown, USA
FDIC's summer edition of Supervisory Insight has a very informative article on Changes to Reg Z (From the Examiners Desk)
Last edited by OnTheEdge; 06/16/09 03:43 PM.
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#1202165 - 06/16/09 09:26 PM Re: New Reg Z Final Rule - Just Published lscy
John Burnett Offline
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Cape Cod
Originally Posted By: lscy
John,

I'm confused.

226.19(a)(3)states "Consumer’s waiver of waiting period before consummation. If the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may modify or waive the seven-business-day waiting period or the three-business-day waiting period required by paragraph (a)(2) of this section, after receiving the disclosures required by § 226.18."

Please let us know where the regulation states the 7 and 3 day waiting periods cannot be waived.


My apologies. I grabbed an old source. You are correct. I am amending my answer above.
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#1202749 - 06/17/09 06:11 PM Re: New Reg Z Final Rule - Just Published John Burnett
NCBanker Offline
Member
Joined: Jan 2008
Posts: 61
I have questions about situations in which you increase your loan amount right before closing (lets say because of a difference in a payoff). The origination charges and points increase also since they are based on the loan amount.

Would you re-disclose the TIL right then?
Does the 3-day corrected TIL waiting period apply?
If not, does a "final TIL" at closing suffice?

What about the new GFE? (under the upcoming rules)
Since that is a "changed circumstance", would you re-disclose the GFE right then?

I'm thinking that you could re-disclose both the TIL and the GFE right then (so you could be allowed to charge the higher settlement charges under RESPA), but there would be no 3-day waiting period under TILA since the APR was not out of tolerance?

Any comments on this line of thinking?
Thank you!!

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#1203789 - 06/18/09 06:39 PM Re: New Reg Z Final Rule - Just Published Jerod Moyer
Trips3 Offline
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Posts: 81
Regarding early disclosure and the new required notice"You are not required to complete this agreement merely because you have received these disclosures, or signed a loan application..

Is this notice to be placed on the GFE?
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#1203804 - 06/18/09 06:48 PM Re: New Reg Z Final Rule - Just Published Trips3
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I believe that would go on the TIL..since it is a part of the Z changes.
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