Ready - read this post to cure your problems posting

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=2003097&an=110#Post2003097

Thank you ricarey! I thought I had finally gone over the edge!

Held my first training session via conference call last week with approximately 350 lenders. Just feeding them a little at a time so they are not overwhelmed with the changes. We covered an overview of the changes and a simple fixed rate Loan Estimate. As I am preparing for my next session, which will be to cover the Closing Disclosure that corresponds to the Loan Estimate, I have one comment and one question. I am using the CFPB prepared disclosures for my examples. (H-24(D) Mortgage Loan Transaction Loan Estimate – Refinance Sample for 150,000 and H-25(E) Mortgage Loan Transaction Closing Disclosure – Refinance Transaction Sample for $150,000.)

Comment – So we are required to disclose the TIP of 77.28% in the case of the LE, but there is no way to calculate the percentage with the information in the document. Now that makes a whole lot of sense…

Question – The CD shows a loan amount of $150,000; Finance Charge of $121,029.00 and TIP of 77.29%. I realize the FC includes more than just the interest, but can’t for the life of me come up with a TIP of 77.29%. Has anyone else tried to figure this out? Interest should be $115,935, but I can’t come up with this figure by subtracting any combination of fees that I thought they might consider to be prepaid finance charges.

I want/need to show my lenders how to calculate the TIP.

I haven't spent a lot of time on them, but if they are anything like the open-credit module forms, they show the format of the disclosures but the numbers they plugged in are actually nonsensical. Maybe it is the same with these??

Thanks Randy. As I just tell my folks, "Your Government" and then they understand...

Ready2, this is how I got it to work:

$737.91 x 360 = $265,647.60 (P&I)
$265,647.60 - $150,000 (P) = $115,647.60 (interest paid LOL)
$115,647.60 + $283.36 (prepaid interest) = $115,930.96 Total Interest

$115,930.96 / $150,000 = 77.287 or 77.29 rounded.

MarkB