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#2273200 - 07/21/22 02:42 PM Fees on a line of credit
ckme Offline
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ckme
Joined: Sep 2002
Posts: 245
I recently changed banks and the new bank shows the loan fees and closing costs as financed on a line of credit in laserpro. My previous banks both showed the fees paid in cash and did a draw sheet if the customer wanted to pay the closing costs from the available line of credit. How do you guys handle disclosing/showing the fees on your lines of credit? Is it different for consumer or commercial loans?

Thanks!

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#2273211 - 07/21/22 04:08 PM Re: Fees on a line of credit ckme
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,926
Galveston, TX
Who cares about commercial loans. smile For consumer loans, open-end credit has no requirements to disclose an itemization of amounts financed, you must just disclose the finance charges and other charges under 1026.6(a) & (b). So, I am a little confused as where this is going.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2273218 - 07/21/22 05:29 PM Re: Fees on a line of credit ckme
crcmnot Offline
Gold Star
Joined: Sep 2016
Posts: 346
Fees can be financed and paid from the line of credit or paid in cash for either a consumer or commercial line. However, as Randy stated, on consumer loans you do need to pay attention to any applicable regulation; commercial you can do pretty much anything. Sounds like your previous bank just had a process in how they wanted things documented.

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#2273220 - 07/21/22 05:37 PM Re: Fees on a line of credit ckme
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,926
Galveston, TX
If you are financing closing costs via a first draw on a consumer line, you do have some first month periodic statement disclosure requirements.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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