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#2006807 - 04/08/15 04:10 PM HELOC-Charges Disclosed if Creditor Pays
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,107
In the mountains
Are we required to disclose fees (appraisal, attorney, credit report, etc.) associated with HELOCs on either the "application" or "account opening" disclosures if the creditor will pay them on behalf of the borrower?

1026.40(d)(7),(8) and 1026.6(a)(2)

Thanks in advance for your help!
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Lending Compliance
#2010122 - 04/24/15 04:05 PM Re: HELOC-Charges Disclosed if Creditor Pays Likes to Comply
1995Banker Offline
100 Club
Joined: Apr 2002
Posts: 241
My bank is considering a HELOC promo and I was wondering the same thing. Can we disclose a flat fee for costs associated with the loan and not have to itemize or break them out?

Any comments appreciated....

Thanks!
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#2010147 - 04/24/15 04:54 PM Re: HELOC-Charges Disclosed if Creditor Pays Likes to Comply
MBTCompliance Offline
Gold Star
Joined: Apr 2015
Posts: 346
Even though we pay the third-party fees on the consumer's behalf, we were instructed by our compliance auditors to include them on the application disclosure.

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#2010187 - 04/24/15 05:44 PM Re: HELOC-Charges Disclosed if Creditor Pays Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
Find some new compliance auditors.

You have to tell them in the application disclosure: Fees imposed by creditor. An itemization of any fees imposed by the creditor to open, use, or maintain the plan, stated as a dollar amount or percentage, and when such fees are payable.

If all you are charging them is a flat fee of $XXXX, that is what you disclose.
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#2010349 - 04/24/15 09:18 PM Re: HELOC-Charges Disclosed if Creditor Pays Likes to Comply
1995Banker Offline
100 Club
Joined: Apr 2002
Posts: 241
Thanks Randy!

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