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#2200219 - 12/10/18 04:27 PM Provide a corrected Truth in Lending?
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,062
In the mountains
In looking at a TIL, it was noted that the UCC release fee was included as a disbursement which increased the loan amount, but was not keyed into the loan software as an actual fee. Therefore, it has not been disclosed on the TIL under Filing Fees in order to be able to exclude it from finance charges. Since it wasn't keyed as fee it wasn't considered as a finance charge in any case. It does appear on the Itemization of Amount Financed though as amount paid to others on my behalf.

Do we need to provide a corrected TIL?
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Lending Compliance
#2200232 - 12/10/18 05:28 PM Re: Provide a corrected Truth in Lending? Likes to Comply
rainman Offline
Power Poster
Joined: Nov 2004
Posts: 3,103
1) If you've already disbursed the loan without satisfying the requirements to exclude the fee from the finance charge, then providing a corrected TIL doesn't cure the violation.

2) If you correctly identified the individual fee in the itemization of amount financed and the itemization was included in the initial TIL disclosures, you have likely satisfied the requirements necessary to exclude it from the finance charge. OSC #2 to 1026.4(e) says: "The various charges described in section 1026.4(e)(1) and (3) may be totaled and disclosed as an aggregate sum, or they may be itemized by the specific fees and taxes imposed. If an aggregate sum is disclosed, a general term such as security interest fees or filing fees may be used."
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