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#2254055 - 05/18/21 05:53 PM Fee for TIL Prep
terpsfan Offline
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Can a fee be charged for preparing the TIL on consumer non real estate loans?

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Lending Compliance
#2254069 - 05/18/21 07:02 PM Re: Fee for TIL Prep terpsfan
rlcarey Offline
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Sure, but why would you? Charging for a doc prep fee is one thing. Having a separate fee would be pretty silly.
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#2254091 - 05/19/21 01:47 AM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
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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.
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#2254092 - 05/19/21 01:50 AM Re: Fee for TIL Prep terpsfan
terpsfan Offline
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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

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#2254094 - 05/19/21 12:00 PM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
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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?
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#2254101 - 05/19/21 02:50 PM Re: Fee for TIL Prep terpsfan
terpsfan Offline
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Yes, it is new. It becomes effective in July so no one is charging yet.

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#2254102 - 05/19/21 03:01 PM Re: Fee for TIL Prep terpsfan
rlcarey Offline
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What law is this?
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#2254104 - 05/19/21 03:11 PM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
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Toano, VA
What state(s) has(have) this kind of law?
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#2254140 - 05/20/21 11:12 AM Re: Fee for TIL Prep terpsfan
terpsfan Offline
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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.

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#2254149 - 05/20/21 02:28 PM Re: Fee for TIL Prep terpsfan
rlcarey Offline
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Galveston, TX
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#2254249 - 05/22/21 03:47 PM Re: Fee for TIL Prep terpsfan
Richard Insley Offline
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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.
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