On a HELOC Early Application Disclosure, can we disclose only a range for TOTAL third party fees (ex: $0 - $5,000) without listing the various fees that are included in the total?

Fees imposed by third parties to open an account. The disclosure must provide an estimate of the total fees imposed by third parties to open an account. Section 1026.40(d)(8). Creditors may provide a range for such fees or state the dollar amount of such fees. This would include appraisal fees, credit report fees, filing fees and attorneys’ fees. The disclosure also must state that the consumer may request more specific cost information from the creditor.

Sure - but if you put $0 - $5,000 - I would not give you a second look. How can it be $0 and if it is $5,000 - no thanks. It has to be meaningful and informative.

Thank you. We have the $0 because lines under a certain dollar amount are "no cost". If over a certain amount, then we charge the 3rd party fees -

An additional question on this.... if the fees that kick in over a certain amount, and you have an affiliate and the AFB disclosure would be required, does it hurt to have that disclosure in the packet for all HELOCs, not just those that WOULD require the borrower to pay the fee?

So you have an early disclosure that says no cost and another disclosure that say you can expect to be charged $xxx. How confusing is that?

In my humble opinion, your no-cost HELOC is a separate product. You cannot just disclose a range of costs from $0 to $5,000 and have that be deemed to be in good faith. You either have costs or you do not.

The least that would be required is that you would disclose $0 for HELOCs with a credit limit of $XXXXX or less and then a disclosure for HELOCs over that amount.

Believe it or not, the early disclosure is pretty clear. I just was curious if the AFB was included and there were no fees, if that would be confusing.

In reality, all loan disclosures are pretty confusing, no matter how well you describe or how much info you give! Every time someone yells, "I didn't understand" another disclosure is put in the packet that no one ever reads. Loan closings would be 6 hours long if everyone read everything included. But you have CYA! I have pointed out some errors over the years with information in the disclosures though when buying a car! I have to say it makes them pretty nervous.