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#2061002 - 01/28/16 05:57 PM Military Lending Act - title perfection fees
Kim M. Offline
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Joined: Oct 2005
Posts: 129
Kansas
Can you tell me if title perfection fees (for non purchase loans) are included in the calculation of the MAPR? thanks Kim

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Lending Compliance
#2061425 - 01/31/16 05:23 PM Re: Military Lending Act - title perfection fees Kim M.
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,618
Galveston, TX
32 CFR 232.4

(c) Calculation of the MAPR.—(1) Charges included in the MAPR. The charges for the MAPR shall include, as applicable to the extension of consumer credit:

(i) Any credit insurance premium or fee, any charge for single premium credit insurance, any fee for a debt cancellation contract, or any fee for a debt suspension agreement;
(ii) Any fee for a credit-related ancillary product sold in connection with the credit transaction for closed-end credit or an account for open-end credit; and
(iii) Except for a bona fide fee (other than a periodic rate) which may be excluded under paragraph (d) of this section:
(A) Finance charges associated with the consumer credit;
(B) Any application fee charged to a covered borrower who applies for consumer credit, other than an application fee charged by a Federal credit union or an insured depository institution when making a short-term, small amount loan, provided that the application fee is charged to the covered borrower not more than once in any rolling 12-month period; and
(C) Any fee imposed for participation in any plan or arrangement for consumer credit, subject to paragraph (c)(2)(ii)(B) of this section.

Since the fee is not specifically listed and (if properly disclosed) it would not be a finance charge under Reg. Z., it would not be included.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2063676 - 02/10/16 09:18 PM Re: Military Lending Act - title perfection fees rlcarey
Jan94 Offline
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Joined: Mar 2001
Posts: 828
USA
How does (iv) Certain exclusions of Regulation Z inapplicable. come into play? (iii)(A) provides that finance charges are included. But it appears (iv) is saying if a finance charge was allowed to be excluded under Reg Z, for purposes of the MAPR calculation that finance charge would be included. The MAPR now includes a participation fee which would not be included for the APR as a finance charge. As an example, charges payable in a comparable cash transaction would not be included as a finance charge. So is (iv) saying that those fees would need to be included? This little paragraph is a bit confusing and just want to be sure I'm not reading too much into it. Thank you.

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#2064602 - 02/17/16 03:06 PM Re: Military Lending Act - title perfection fees Jan94
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Just following up -- is (iv) stating anything different as it relates to what finance charges are included in the MAPR? Thank you!

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#2064859 - 02/18/16 07:14 PM Re: Military Lending Act - title perfection fees rlcarey
SallyGirl Offline
Member
Joined: Aug 2014
Posts: 69
Does anyone have information defining what is a small amount loan on a closed-end loan for the exclusion from the MAPR for an application fee charged by a bank? Is the short term defined as 9 months or less?

"Any application fee charged to a covered borrower who applies for consumer credit, other than an application fee charged by a Federal credit union or an insured depository institution when making a short-term, small amount loan..."

Appreciate your thoughts.

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#2065196 - 02/21/16 09:21 PM Re: Military Lending Act - title perfection fees Kim M.
Compliance Action Subscriber 1054 Offline
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Joined: Sep 2015
Posts: 6
Section 232.1(t)(1)(2)(I)(ii) defines a short-term, small amount below and it does include a term of 9 months or less.

(t) Short-term, small amount loan
means a closed-end loan that is—
(1) Subject to and made in accordance
with a Federal law (other than 10 U.S.C.
987) that expressly limits the rate of
interest that a Federal credit union or an
insured depository institution may
charge on an extension of credit,
provided that the limitation set forth in
that law is comparable to a limitation of
an annual percentage rate of interest of
36 percent; and
(2) Made in accordance with the
requirements, terms, and conditions of a
rule, prescribed by the appropriate
Federal regulatory agency (or jointly by
such agencies), that implements the
Federal law described in paragraph
(t)(1) of this section, provided further
that such law or rule contains—
(i) A fixed numerical limit on the
maximum maturity term, which term
shall not exceed 9 months; and
(ii) A fixed numerical limit on any
application fee that may be charged to
a consumer who applies for such
closed-end loan.

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#2066127 - 02/25/16 08:14 PM Re: Military Lending Act - title perfection fees Jan94
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Looks like I was the only one confused crazy. I was able to get clarification that I was reading too much into it and that (iv) was just trying to restate what was in (i)-(iii) (which is what Randy said smile )

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