Skip to content
BOL Conferences
Thread Options
#2254055 - 05/18/21 05:53 PM Fee for TIL Prep
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 2,058
Can a fee be charged for preparing the TIL on consumer non real estate loans?

Return to Top
Lending Compliance
#2254069 - 05/18/21 07:02 PM Re: Fee for TIL Prep terpsfan
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Sure, but why would you? Charging for a doc prep fee is one thing. Having a separate fee would be pretty silly.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2254091 - 05/19/21 01:47 AM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Why do you want to poke a bear? Charging customers to perform a duty that is required by law will irritate customers, your regulator, and the Congress that could easily ban this practice.
_________________________
...gone fishing.

Return to Top
#2254092 - 05/19/21 01:50 AM Re: Fee for TIL Prep terpsfan
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 2,058
A state law for an affiliate allows for a closing fee to charge and in the bill it says it is to cover TIL compliance

Return to Top
#2254094 - 05/19/21 12:00 PM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Originally Posted by terpsfan
Can a fee be charged for preparing the TIL on consumer non real estate loans?
Originally Posted by terpsfan
A state law...says....
If a state law already approves this practice, then your question is actually - "is this state law preempted by federal law?" That's a question that will have to be litigated...or resolved by new federal legislation. Congress banned fees for preparing TIL disclosures in federally-related mortgage loans (see Part 1024.12), and there's every reason to expect the same outcome if lenders begin charging fees for preparing TIL disclosures for other types of transactions. Is this state law new? Are other in-state lenders already charging this fee?
_________________________
...gone fishing.

Return to Top
#2254101 - 05/19/21 02:50 PM Re: Fee for TIL Prep terpsfan
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 2,058
Yes, it is new. It becomes effective in July so no one is charging yet.

Return to Top
#2254102 - 05/19/21 03:01 PM Re: Fee for TIL Prep terpsfan
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
What law is this?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2254104 - 05/19/21 03:11 PM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
What state(s) has(have) this kind of law?
_________________________
...gone fishing.

Return to Top
#2254140 - 05/20/21 11:12 AM Re: Fee for TIL Prep terpsfan
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 2,058
The law is for industrial loan and thrift companies in TN and states that it allows for lenders to collect a closing fee at the time of the making of the loan for the purpose of preparing and executing the documents for, and verifying compliance with, the federal Truth in Lending Act and state law.

Return to Top
#2254149 - 05/20/21 02:28 PM Re: Fee for TIL Prep terpsfan
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2254249 - 05/22/21 03:47 PM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
As a federally-supervised bank, I wouldn't touch this kind of fee. As a state-licensed industrial loan or thrift company, however, you won't face the troubling legal/ethical issue of requiring the public to pay for something the law grants as a right. State licensing agencies aren't going to question an act of their general assembly.

If your affiliate plans to charge this type of fee, they will have to call it a FC and include it in the APR. Since it's a one-time, up front fee, you shouldn't have trouble verifying these disclosures.
_________________________
...gone fishing.

Return to Top

Moderator:  Andy_Z