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#1436636 - 08/30/10 10:44 PM Disclosing APR when waiving closing costs
Runreb Offline
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Runreb
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If advertising that bank will waive or pay closing costs up to $$$ for bank owned property, how do I take that into account when disclosing the APRs in an ad?

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Lending Compliance
#1436932 - 08/31/10 04:19 PM Re: Disclosing APR when waiving closing costs Runreb
sdhj Offline
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When the Lender/Seller is one and the same, you cannot exclude traditional Finance Charges from the APR. (Seller's Points are not applicable to Creditor/Seller finance charges.) So, you will need to include all traditional, customary finance charge fees into the advertised Annual Percentage Rate.

All Opinions are ABCOLUTELY mine.

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#1436941 - 08/31/10 04:33 PM Re: Disclosing APR when waiving closing costs sdhj
West Coast Comp Offline
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Lost in the rain.
You can eliminate bank fees but not third party fees.
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#1437261 - 08/31/10 10:12 PM Re: Disclosing APR when waiving closing costs West Coast Comp
Runreb Offline
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Runreb
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So even though we are waiving or paying up to $xxx in fees I need to include customary fees as finance charges and include in the APR. Is that correct?

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#1437295 - 09/01/10 02:19 AM Re: Disclosing APR when waiving closing costs Runreb
Richard Insley Online
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Toano, VA
You include fees that-
1. meet the definition of FCs, and
2. are required by contract between lender and borrower.

If the lender is waiving fes, then that effectively amends the contract so the borrower is no longer required to pay them.
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#1437347 - 09/01/10 01:12 PM Re: Disclosing APR when waiving closing costs Richard Insley
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is that true even if it's a 3rd party fee? (this subject always confuses me...I'm not even sure why! Mental block maybe??)


ps..Richard, everytime I see that fish your are holding...it makes me jealous! I wanna go fishing!!!! cry
Last edited by RR joker; 09/01/10 01:13 PM.
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#1437400 - 09/01/10 02:21 PM Re: Disclosing APR when waiving closing costs Richard Insley
Runreb Offline
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Runreb
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So on the calculation of the APRs for the ad, it sounds like we would NOT include any fees waived or paid by the seller/lender (origination, flood, nor attorney).
Is that correct???

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#1437503 - 09/01/10 03:32 PM Re: Disclosing APR when waiving closing costs Runreb
Dan Persfull Offline
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Bloomington, IN
If the bank is paying or waiving the specific fees they would not be included in the FC.

If the seller in paying the fees then they have to be contractually liable to the bank for paying the fee to exempt them from the FC.
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#1437743 - 09/01/10 06:54 PM Re: Disclosing APR when waiving closing costs Dan Persfull
Runreb Offline
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Runreb
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Originally Posted By: Dan Persfull
If the bank is paying or waiving the specific fees they would not be included in the FC.

If the seller in paying the fees then they have to be contractually liable to the bank for paying the fee to exempt them from the FC.


Would you please elaborate on the second point? [We would be selling the bank owned property.] Thanks.

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#1438722 - 09/03/10 03:54 AM Re: Disclosing APR when waiving closing costs Runreb
Richard Insley Online
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Toano, VA
This is a credit sale, so the seller and lender are one and the same. Any binding agreement between the parties must be included as a part of the basis for the TIL disclosures.
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#1438737 - 09/03/10 12:18 PM Re: Disclosing APR when waiving closing costs Richard Insley
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The Swamp
Be sure you use the TIL for a credit sale too!
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Say you'll haunt me - Stone Sour

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#1440029 - 09/08/10 03:05 PM Re: Disclosing APR when waiving closing costs RR Joker
sdhj Offline
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Georgia
Thanks, I had forgotten that part. Whoops!!!!

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