That is just totally ass backwards to me.

So then, my note should have the discounted rate, and the addendum should spell out when and how much it could go up, correct?

Never an argument among friends. Only productive discussion.

Preferred rate loans are not subject to the full ARM disclosure requirements of Reg. Z but you need to make some of them. Comment 5(B) to the OSC to section 226.19(b)states:

"(B) Preferred-rate loans where the terms of the legal obligation provide that the initial underlying rate is fixed but will increase upon the occurrence of some event, such as an employee leaving the employ of the creditor, and the note reflects the preferred rate. The disclosures under §§226.19(b)(1) and 226.19(b)(2)(v), (viii), (ix), and (xii) are not applicable to such loans."

IMHO, this means you have to make the 226.19(b)(2)(i),(ii),(iii), (iv), (vi), (vii), (x) and (xi) disclosures, as applicable. http://www.bankersonline.com/regs/226/226-19.html

Help! I'm sorry if this has been covered already!

I am reading the Q&A's from the 6/9/09 webinar and some of the information seems contradictory, but I may be reading it wrong.

If we mail the initial disclosure to the customer, we begin the 7 day waiting period from the date they were mailed, correct? Or would there be an additional three days since the initials were mailed, making it a 10 day waiting period?

It seems like I've read both answers.

Initial disclosure: 7 days regardless of the delivery method
Error requiring redisclosure: additional 3 days if in person/6 days if mailed.

I'm at home so this is from memory. Hopefully someone will chime in with a confirmation or correction.

CF - that's what I thought. I needed some confirmation, though.

My EIC (FDIC Chicago Region) just telephoned me in response to an email I sent last week.

They have not had any formal training on the regulation yet so he said all opinions being given right now are just that, opinions.

He says, although he does not think it makes sense since an out of tolerance over disclosure is not treated as a violation, that the way the regulation is written re-disclosure is required regardless if the out of tolerance is either up or down.

He said until they receive formal training or there is a formal interpretation issued that they will go by how the regulation is written. Redisclose if the APR is out of tolerance either up or down.

I am working at another branch today and tomorrow and my PC access is limited so I will not be on here much the next couple of days.

The way the regulation is written has not changed. Mortgage loans do not require redisclosure if the final APR is over due to changes in the finance charge.

1) Mortgage loans. In a transaction secured by real property or a dwelling, the disclosed finance charge and other disclosures affected by the disclosed finance charge (including the amount financed and the annual percentage rate) shall be treated as accurate if the amount disclosed as the finance charge:
(i) is understated by no more than $100; or (ii) is greater than the amount required to be disclosed.

My EIC at the Federal reserve was adamant about this.

Again, I think you should operate according to how you will be examined...but this is going to cause longer than necessary delays if the examiners don't all get on the same page!

Also, I have sent my EIC an email in order to obtain verification of this for training and future exam purposes...I will let you know when I receive a response.

Is anyone going to be listening to the "Call the Fed" teleconference on the 22nd? They are going to be discussing this topic.

Well, the mortgage lending rules anyway.

Under the Regulation Z rules prior to July 30th, where there were multiple applicants for a loan and an early TIL was required, the lender could provide the disclosure to either applicant. Now, apparently, the rules have changed due to a clause in MDIA which calls for all "material" disclosures be provided to all applicants; thus early TILS must be provided to each applicant if the loan being applied for is coverd by RESPA's Right of Rescission. Is this correct?!

You Busy, We just got a letter from Metavante telling us this today.

Tigg, can you give us more info about this? This is the first I've heard about the teleconference.

It's through FRB San Francisco: Call the Fed Audio Conference

Thanks, FlamingoGal. Do you happen to know if there is a way to hear the teleconference if you can't make the live call? Do they archive it or post it on their website? We've scheduled a re-viewing of BOL's conference for 7/22 and I don't want to miss that (it was great the first time).

YouBusy posted "Under the Regulation Z rules prior to July 30th, where there were multiple applicants for a loan and an early TIL was required, the lender could provide the disclosure to either applicant. Now, apparently, the rules have changed due to a clause in MDIA which calls for all "material" disclosures be provided to all applicants; thus early TILS must be provided to each applicant if the loan being applied for is coverd by RESPA's Right of Rescission. Is this correct?!"

Look at post 1210354 that Dan Persfull made on this topic in late June in this thread. http://www.bankersonline.com/forum/ubbth...354#Post1210354 You may have to scroll up or down to get to it.

FlamingoGal, do you know if participation is limited to banks regulated by the FRB?

I'm not FlamingoGal, but this is from the form she linked above. I think anyone can attend.

The San Francisco Fed's Division of Banking Supervision & Regulation (BS&R) invites banking industry directors, officers, staff, consultants, and regulators to call into periodic audio conferences.

That is my understanding - that anyone can attend. We are FDIC regulated out of an entirely different region and I signed us up a while back.

I sent my EIC at the FRB the same things I posted a couple of pages back re: when eTIL is overdisclosed...He reiterated that if it is due to a true finance charge caluclation difference, such as prepaids end up lower or rate is lowered, you do not have to delay closing. If it's due to anything else (not FC related, you would...so if you make a mistake and incorrectly disclose a rate, you would. he gave this example of a true story that happened some time back:

"Not if the 8% was caused by a typo or programming error. The 8% would have to directly reflect the disclosed finance charge. Years ago there was a bank that noticed the APR was usually about 1/2% higher than the note rate, so instead of bothering to calculate the APR they just added 1/2% to the note rate. An overdisclosure by them would not have been caused by an overstatement of the finance charge."

can you believe that!

I signed up (and was accepted) even as a consultant.

So...you would send two ETIL disclosures (duplicates)to each applicant (spouses) in the same envelope if ROR is applicable?!?!

I received my notification via email and signed up. Our bank is also FDIC regulated. "See" you there!

Can anyone tell me if these examples are correct? We will be including Saturday in our calculation.

7 DAY WAITING PERIOD

Application Date-------------August 3, 2009
Early TIL Disclosure--------August 3, 2009
Seven Days Up---------------August 10, 2009
Note Date-----------------------August 11, 2009
Rescission Date-------------August 11, 2009
Rescission Over-------------Midnight, August 14, 2009
Disbursement Date-------On or After August 15, 2009


HOEPA LOAN

Application Date------------August 3, 2009
Early TIL Disclosure-------August 3, 2009
Seven Days Up--------------August 10, 2009
HOEPA Date-------------------August 11, 2009
Note Date----------------------August 13, 2009
Rescission Date-------------August 13, 2009
Rescission Over-------------Midnight, August 17, 2009
Disbursement Date-------On or After August 18, 2009


RE-DISCLOSE

Application Date------------August 3, 2009
Early TIL Disclosure-------August 3, 2009
Terms Change---------------August 7, 2009
Seven Days Up--------------August 10, 2009
Note Date----------------------August 12, 2009
Rescission Date-------------August 12, 2009
Rescission Over-------------Midnight, August 15, 2009
Disbursement Date-------On or After August 17, 2009

Use the calculator tool available in Banker's Tools and that will help you check any example you might come up with.

Just to clarify on the question of delivery.... If my husband stops by and picks up the GFE/ETIL and the LO hands him my copy too, we would still have to wait the 3+3 to close because mine wasn't delivered in person? I'm asking because I KNOW someone is going to ask me that specific question.