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#1330339 - 01/25/10 08:23 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Princess Romeo
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Diamond Poster
Joined: Nov 2000
Posts: 1,820
Southern California
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Oh come on Princess. I'm sure they are real busy writing more amendments that will be equally as confusing. LOL!!
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Dolly Nugent CRCM Opinions expressed are my own.
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#1330431 - 01/25/10 09:28 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Dolly Nugent
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Gold Star
Joined: Nov 2008
Posts: 498
Texas
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The Higher Education Opportunity Act (HEOA) also amended TILA § 104(3) to expressly cover private education loans over $25,000. [From A.S. Pratt's Truth-In-Lending Manual] § 104. Exempted transactions
This title does not apply to the following:
(3) Credit transactions, other than those in which a security interest is or will be acquired in real property, or in personal property used or expected to be used as the principal dwelling of the consumer and other than private education loans (as that term is defined in section 140(a)), in which the total amount financed exceeds $25,000. So, does this mean that private education loans that exceed $25,000 are exempt from the requirements of TILA? Or, does it mean that private education loans are not exempt?
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#1330566 - 01/25/10 11:30 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Princess Romeo
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Diamond Poster
Joined: May 2005
Posts: 1,813
Giant side of TX
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The great nes just continues - We use Wolters Kluwer forms in our loan software & got the word that they, said "Sorry but we won't be supporting this revision to REg Z".
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#1330597 - 01/26/10 01:41 AM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Princess Romeo
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10K Club
Joined: Jul 2001
Posts: 83,364
Galveston, TX
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Sorry to bring this up again, but this is the language in the reuglation for loans that are not considered Private Education Loans:
(iii) Does not include open-end credit any loan that is secured by real property or a dwelling;
Does anyone else see a problem with the verbiage? It's a typo - go to the actual TILA: 15 USC 1650 (a)(7) the term “private education loan”— (B) does not include an extension of credit under an open end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling;
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#1331136 - 01/26/10 07:12 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
ktac MITCH
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Member
Joined: Jun 2007
Posts: 87
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I got the same message from Wolters Kluwer today too. Do you happen to have Rembrandt?
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#1331205 - 01/26/10 07:45 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
AmyH
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100 Club
Joined: Nov 2004
Posts: 132
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If we already have a loan for college expenses on the books that comes up for renewal on or after February 14, will the new disclosures be required for the renewal?
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#1331477 - 01/26/10 10:23 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Auditman
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Diamond Poster
Joined: Jul 2006
Posts: 1,115
Where the Green Grass Grows
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If we already have a loan for college expenses on the books that comes up for renewal on or after February 14, will the new disclosures be required for the renewal? That's been asked in this thread, and noone seems to want to answer or knows what will happen. Technically, because any refinance or consolidation of an education loan would count for the disclosures ---- my guess is that the reg will apply to these old loans too. No grandfather clauses. I have digested the fact that Wolters Kluwer will not support the new disclosures. Are there any sample or blank forms out there for fixed rate loans, so we can see if we can attempt to complete the necessary disclosures if we occasionally have one or two? I have been unable to find disclosures for a fixed rate. What I think I will do for these is using the July 1st Treasury Charts plus the Depart of Ed's index's (it's a certain %+ for each type PLUS, STAFFORD, and the other one) for the term of my loan (more than likely it will be between 30 & 90 days for my customers), build my dislosure from the blank form in the Reg (and pray that I'm right).
Last edited by Always In Training; 01/26/10 10:27 PM.
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#1331560 - 01/27/10 12:23 AM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Auditman
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Power Poster
Joined: Jun 2001
Posts: 8,272
Where the heart is
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If we already have a loan for college expenses on the books that comes up for renewal on or after February 14, will the new disclosures be required for the renewal? Perhaps you can do a modification to extend the maturity date rather than renewing with a new note. Or turn the thing into a line of credit. If you are a credit union, you may want to consider making these things through LoanLiner advances.
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#1332682 - 01/28/10 02:35 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
BLPage
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Junior Member
Joined: Nov 2004
Posts: 36
Midwest
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Relative to Private Education Loans, Wolters Kluwer now says they are "tracking the requests for possible changes in the future". ALL WK customers should email:
ArtalendingSup@wolterskluwer.com
and request that WK get with it and fully support these types of loans pronto. Look at what you're paying them in annual fees. Only when users unite in outrage will they respond appropriately with a solution. Take 2 minutes to email your request today!
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#1333462 - 01/28/10 10:33 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
HGICO
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100 Club
Joined: May 2004
Posts: 150
South Dakota
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Where would we find the Applicant Self-Certification form?
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#1333507 - 01/28/10 11:57 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
crc
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Gold Star
Joined: Jul 2007
Posts: 320
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I found a copy of the self-certification form here: http://www.nasfaa.org/PDFs/2009/SelfCertificationDraft.pdf...but from what I understand it is up to the borrower to provide. Does anyone else think that it's just a little nuts if "Mom" wants to take out $5000 unsecured loan and use $500 of it for "Little Susie" to pay for books that we have to give all these stinking disclosures? I mean, "Mom" is still going to use $4500 for her own needs. I just can't get my brain around the reason for disclosures and ROR on multi-purpose loans where the borrower is not the student. It makes no sense whatsoever. Am I missing something? Does it say someplace "Oh, by the way - this only applies if the borrower is a student"?!? Is anyone else hoping that the Fed will issue a last minute "FAQ" memo like they did for HPML Balloon loans?
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#1333622 - 01/29/10 02:29 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
Bville
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Gold Star
Joined: Jul 2007
Posts: 320
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I did a google-search for the official title of the form: "Private Education Loan Applicant Self Certification".
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#1333626 - 01/29/10 02:33 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
pacar
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Gold Star
Joined: Jul 2007
Posts: 320
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...The wording on the form, however, in the definitions section is a bit dated I suspect:
"A Private Education Loan is a loan provided by a private education lender that is not a Title IV loan and that is ISSUED EXPRESSLY FOR POSTSECONDARY EDUCATION EXPENSES..." (emphasis added)
So much for multiple purpose loans - at least according to this form. Too bad it's not reality.
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#1334349 - 01/29/10 09:12 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
pacar
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Power Poster
Joined: Oct 2009
Posts: 9,105
OK
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What requirements are there for the "applicant self-certification form"? where did that come from?
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#1334404 - 01/29/10 09:51 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
manylayers
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Power Poster
Joined: Oct 2009
Posts: 9,105
OK
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It's been awhile since i read the revisions...i just don't recall anything about an "applicant self-certification form"....is that for the multi-purpose loans that most of us can't stay away from or just the actual, official private education loans?
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#1335777 - 02/02/10 05:29 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
rlcarey
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Platinum Poster
Joined: Dec 2005
Posts: 553
USA
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Sorry to bring this up again, but this is the language in the reuglation for loans that are not considered Private Education Loans:
(iii) Does not include open-end credit any loan that is secured by real property or a dwelling;
Does anyone else see a problem with the verbiage? It's a typo - go to the actual TILA: 15 USC 1650 (a)(7) the term “private education loan”— (B) does not include an extension of credit under an open end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling; I noticed this typo myself today. To me this suggests that open ended credit is exempt.
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#1336936 - 02/03/10 07:57 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
CompDat
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Power Poster
Joined: Oct 2009
Posts: 9,105
OK
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will someone cite for me where the "applicant self-certification form" is mentioned? I read the addition to Reg Z awhile back and don't recall reading that.
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#1336937 - 02/03/10 08:00 PM
Re: FRB 3/11 ANPR Reg Z Amend on College Student Loans
raitchjay
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Power Poster
Joined: Oct 2009
Posts: 9,105
OK
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nevermind...found it
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