During review, we found a finance charge of $150 that was not categorized as a prepaid finance charge. This caused the APR to be understated, but within tolerance. So no APR violation. However, the finance charge was understated by $150; therefore, a finance charge violation. We have no TRID issues. Both the LE and CD are accurate.
If we reimburse the customer the $150 in a cash payment, do we also have to revise the CD and properly categorize the fee as a prepaid finance charge, so the APR and Amount Financed are correct in the CD?
We are way past the 30 days after closing. I reviewed compliance exam manuals as well as old guidance for reimbursement. Nothing is really clear on the re-disclosure. We are definitely going to reimburse the $150 to avoid any civil liability under section 130a TILA. But do we have to revise the CD with the proper prepaid finance charge?
I am getting multiple responses that I have to re-disclosed, and others are telling me that if I reimburse the $150, then my disclosures are now accurate. Any help would be greatly appreciated in clearing this up?