Skip to content
BOL Conferences
Thread Options
#1211417 - 07/02/09 04:28 PM Truth in Lending Disclosures
denali Offline
100 Club
Joined: Mar 2006
Posts: 102
Fairbanks, Alaska
I have always been taught there are to be no alterations in the "fed box" on truth in lending disclosures. Is this actually in the regulation anywhere?

Return to Top
Lending Compliance
#1211439 - 07/02/09 04:41 PM Re: Truth in Lending Disclosures denali
Richard Insley Online
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
No. Nevertheless, alterations raise timing questions and timing is a Reg. Z requirement. If the alteration was made before the TIL disclosure document was delivered to the consumer, then the alterations are the disclosures and they must comply. If the consumer initialed the alterations, then there's an excellent chance that the alterations occurred before consummation. If they are not initialed, then you have no evidence of what was actually delivered prior to consummation. Post-consummation alterations are meaningless unless they were communicated to the consumer as part of a corrective action that complies with Section 130(b) of the TILA.
_________________________
...gone fishing.

Return to Top
#1211452 - 07/02/09 04:51 PM Re: Truth in Lending Disclosures Richard Insley
denali Offline
100 Club
Joined: Mar 2006
Posts: 102
Fairbanks, Alaska
Thanks for your response. I'm trying to figure out a way to address this with a credit officer. The ETIL has 2 lines (//) drawn through the APR! The customer did sign however; you are right, there is no way to know if he signed before or after and a bigger question to me is why, and who drew those lines!

Return to Top
#1211467 - 07/02/09 04:57 PM Re: Truth in Lending Disclosures denali
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,726
Denali - May I ask are you going to re-disclose the early-TIL? I realize that sounds silly, but I just found a problem on an e-TIL and I am trying to figure out the proper way to correct it.
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top
#1211475 - 07/02/09 05:03 PM Re: Truth in Lending Disclosures Tesla
denali Offline
100 Club
Joined: Mar 2006
Posts: 102
Fairbanks, Alaska
Yes, The credit officer did re-disclose, months later, so I haven't figured out yet what changed to make him redisclose because the APR was within the tolerance. This loan is the permanent financing of a previous construction loan and that is the reason the dates are so spread out.

Return to Top
#1211570 - 07/02/09 06:30 PM Re: Truth in Lending Disclosures denali
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,726
Ok - so my loan (and I am sorry to glob on here)closed (purchase) yesterday and I am reviewing the docs post-closing. The E-TIL was not completed with security interest information, the * = estimates or anything like that. Would you require re-disclosure? The borrower has the final TIL which is accurate. (Yes, I will be training the lender.)
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top
#1211584 - 07/02/09 06:47 PM Re: Truth in Lending Disclosures Tesla
denali Offline
100 Club
Joined: Mar 2006
Posts: 102
Fairbanks, Alaska
Since it is already closed I would not go back and re-disclose however; I would write this up in the audit as an exception. E-TILs must be marked as estimates!

Return to Top
#1211592 - 07/02/09 06:57 PM Re: Truth in Lending Disclosures denali
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,726
Thanks! I was thinking it was silly, but a lot of times I think re-disclosing is silly and miss somewhere in the commentary it is required or something!

wink

Thanks again!
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top

Moderator:  Andy_Z