It is true thall ALL consumers entitled to rescind need to receive the HOEPA disclosure 3 days PRIOR to consummation when you have a loan subject to these requirements. If a loan is not subject to HOEPA, then you don't provide the HOEPA disclosure.

Would a mortgage registration tax collected at closing be included in the HOEPA fees and points test? Thanks. This reg makes me nauseous.

I thought that you could not draft a table of "points and fees" threshold per loan amount because the threshold is a percentage of the "total loan amount," and that term is impacted by the amount of odd days interest. So, the "points and fees" threshold will be higher on the first day of the month and the last couple of days of the month than in the middle of the month (assuming that the payments are due on the first of the month).

BTW, it is a shame that David's HOEPA worksheet and disclosure do not include formulas for calculating the maximum payment amount for an ARM loan. You really got my hoepa up.

David, I noticed that your HOEPA disclosure includes two signature lines. The Model Sample H-16 does not. Nor does it include the date. The question has come up that if the disclosure is not dated, how do you show that you gave it 3 days in advance as required? Should it be dated (and signed)??

Good point. There should be a date on the form. I feel that the form should be signed, although this is not required by regulation.

Help me! Help me! I thought I had a handle on this stuff, boy was I wrong. The worksheets are great, but I'm really stuck on the "loan amount". We start with amount financed (I think I can figure that) but then we subtract any of the fees that are not finance charges????Is that right? Does it matter if the fees are financed or paid in cash? Orignally, I was just plugging in the fees and using the "actual" loan amount.

I'm much confused. To calculate the loan amount,do I start with the amount financed and then subtract the fees that are not finance charges? Is that how is works on your worksheet? Thanks in advance for any guidance.

tressaj,

To calculate total points and fees, you start with your total finance charges excluding interest, then add any fees paid to mortgage brokers, then add any fees that you normally exclude from the finance charge under section 226.4(c)(7) only if your bank will be receiving direct or indirect compensation or the fee is paid to the bank or an affiliate. (For example, if the customer pays an appraisal fee that was conducted by a bank employee or an affiliate of the bank you would include the cost of the fee in the calculation.) Next, if the customer obtains credit life insurance, you include the premiums in the calculation. Once you get the total of all the above you need to move to the next calculation.

You need to calculate the total loan amount. Start out with the amount financed on your Truth In Lending disclosure then subtract those fees that are normally excludable from the finance charge under section 226.4(c)(7) of Regulation Z but for which the bank will receive direct or indirect compensation or the fee will be paid to an affiliate only if such fees are financed. This means that the appraisal fee referred to above is only subtracted from the amount financed if the customer is financing it. If the customer paid it at the time of application, it does not get subtracted from the amount financed here. It would be included in the calculation for total points and fees. The result is the total loan amount. You then take your total points and fees and divide them into the total loan amount to see if the result exceeds the greater of $480 or 8% of the total loan amount.

Andy Z had provided a link in a post to an article on the FRB of Dallas' web site that gives a nice explanation of this. If you search the FDIC compliance manual you will find HOEPA worksheets based on the rule currently in effect. You would have to modify them to address the inclusion of credit insurance premiums and the changes to the APR test threshold based on lien position.