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#1996055 - 02/13/15 07:16 PM
Re: Final TIL Violation
WHEDA
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10K Club
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
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How is the total of payments and the finance charge overstated if the TIL is based on a payment of $14.45 and the legal agreement calls for a payment of $26.55?
The TIL has to reflect the legal obligation. It appears you have an understated total of payments, the finance charge and most likely the APR.
the borrower any basis to rescind
Since this was a downpayment assistance loan I have to assume this was a Residential Mortgage Transaction and the ROR is not applicable.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1996195 - 02/13/15 11:44 PM
Re: Final TIL Violation
WHEDA
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10K Club
Joined: Oct 2000
Posts: 10,180
Toano, VA
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The original post says the disclosed payments are understated but the FC and TOP are "grossly overstated." Were the FC and TOP based on the correct payment amounts?
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...gone fishing.
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#1996219 - 02/14/15 01:12 PM
Re: Final TIL Violation
WHEDA
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10K Club
Joined: Oct 2000
Posts: 10,180
Toano, VA
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So.... if the lender disclosed: - a payment schedule of 360 @ $14.45 instead of 120 @ $26.55 - a TOP of $5,202 instead of $3,186 - a FC of approximately $2,848 instead of $832 - a PFC of at least 1% of the loan amount then: - the payment schedule is not disclosed accurately (violation of Section 1026.18(g) or 1026.18(s)) - the TOP is overstated (violation of Section 1026.18(h)) - the FC is overstated (violation of Section 1026.18(d)) and, when based on the correct payment schedule: - the APR is understated by more than 0.125% (reimbursable violation of Section 1026.18(e))
See Section 130(b) of the TILA for the "cure" procedure. I agree with Dan--a screw-up of this type can't be excused as a "bona fide" error.
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...gone fishing.
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#1996264 - 02/16/15 08:02 PM
Re: Final TIL Violation
Richard Insley
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100 Club
Joined: Apr 2009
Posts: 189
Wisconsin
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Thank you all for your comments.
This is really a bazaar situation. The lender disclosed an APR of 6.125%, which equals the Note rate, Fin Chg of 2,822.88, Amt Financed of 2,378.00, the Note amount (the only fee associated with the loan is a $30 recording fee for the Mortgage), and ToP of $5,200.88. They also disclosed a P&I Pymt and Total Est Mthly Pymt of 14.45. I agree with their APR of 6.125% and Amt Financed of $2,378, but FC should be 807.95 and ToP of 3,185.95. APRWIN shows an APR of 6.2379%, FC of 807.93 and ToP of 3,185.93 using 119 pymts of 26.55 and 1 of 26.48. Not sure why APR of 6.2379% but within .125% tolerance.
This mess is way above my pay grade. ; )
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#1996267 - 02/16/15 08:25 PM
Re: Final TIL Violation
WHEDA
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10K Club
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
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The above runs together and is hard for me to separate.
What is dislcosed on the final TIL?
Transaction date? First payment date? APR disclosed? Finance charge disclosed? Amount financed? Number of payment and amounts (payment schedule)?
What is disclosed in the note?
Number and amount of payments? Interest rate?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
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#1996270 - 02/16/15 09:09 PM
Re: Final TIL Violation
WHEDA
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10K Club
Joined: Oct 2000
Posts: 10,180
Toano, VA
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Not sure why APR of 6.2379% but within .125% tolerance. Because the APR is based on a blend of the interest and the PFC. The shorter the term, the more impact the PFC has on the APR.
_________________________
...gone fishing.
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