Skip to content
BOL Conferences
Forums · Active Threads · Forum Rules · Mark All Read · Log In
BankersOnline.com Forums Banker Forums Lending Compliance Mortage Ad
Thread Options
#334839 - 03/17/05 03:09 PM Mortage Ad
Peepers Offline
10K Club
Joined: Jul 2002
Posts: 13,994
When advertising a mortgage we have triggered other disclosures. The disclosure that refers to the amount or percentage of downpayment states it’s applicable only in a credit sales transaction.

There has been some confusion here about this. Doesn’t this mean that this disclosure applies only when the bank (creditor) is also the seller of the property?
_________________________
blah

Return to Top
Lending Compliance
#334840 - 03/17/05 03:12 PM Re: Mortage Ad
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 84,321
Galveston, TX
Yes - that is the definition of a credit sale.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#334841 - 03/17/05 03:24 PM Re: Mortage Ad
Peepers Offline
10K Club
Joined: Jul 2002
Posts: 13,994
Thank you
_________________________
blah

Return to Top
#334842 - 03/17/05 05:00 PM Re: Mortage Ad
Some Days You Just Can't Win Offline
Gold Star
Some Days You Just Can't Win
Joined: Feb 2002
Posts: 461
Mississippi River Valley
Quote:

When advertising a mortgage we have triggered other disclosures. The disclosure that refers to the amount or percentage of downpayment states it’s applicable only in a credit sales transaction.

There has been some confusion here about this. Doesn’t this mean that this disclosure applies only when the bank (creditor) is also the seller of the property?



This confuses me.....are you saying that unless the bank is selling the property we don'e have to put down payment information in an advertisement?

We are a bank, not a realty company, so then we would not be involved in a "credit sale" unless we are selling a reposession?

Wouldn't down payment be part of the "terms" and need disclosing? See obviously I'm confused. Maybe it's because of the headache that I have from either no sleep last night or because the OCC has been here since the first of March and are scheduled to be here until mid-April!

Thank you.
_________________________
How long a minute is depends on what side of the bathroom door you're on.

Return to Top
#334843 - 03/17/05 05:05 PM Re: Mortage Ad
Peepers Offline
10K Club
Joined: Jul 2002
Posts: 13,994
Quote:

This confuses me.....are you saying that unless the bank is selling the property we don'e have to put down payment information in an advertisement?

We are a bank, not a realty company, so then we would not be involved in a "credit sale" unless we are selling a reposession? Thank you.



Correct.

Our confusion arose because of a compliance examiner's interpretation of this. They wouldn't admit they were wrong and eventually we dropped it. It was trivial and didn't seem worth fighting at the time.
_________________________
blah

Return to Top
#334844 - 03/17/05 05:06 PM Re: Mortage Ad
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,670
Bloomington, IN
From the OSC to 226.

Paragraph 24(c)(1).

1. Downpayment. The dollar amount of a downpayment or a statement of the downpayment as a percentage of the price requires further information. By virtue of the definition of downpayment in §226.2, this triggering term is limited to credit sale transactions. It includes such statements as:
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#334845 - 03/17/05 06:44 PM Re: Mortage Ad
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 531
Midwest
We list downpayments (10% down, 0% Lot Loan, etc.) in a lot of our mortgage pieces. As a bank, we very rarely encounter a credit sale transaction, i.e. repossession. The use of a downpayment percentage is allowable except in the credit sale transactions.

Return to Top
#334846 - 03/18/05 12:40 AM Re: Mortage Ad
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,203
Toano, VA
Once again, a definition contains the crucial bit of information needed to resolve a problem.
Last edited by Richard Insley; 03/18/05 12:40 AM.
_________________________
...gone fishing.

Return to Top
#334847 - 03/18/05 04:28 PM Re: Mortage Ad
Some Days You Just Can't Win Offline
Gold Star
Some Days You Just Can't Win
Joined: Feb 2002
Posts: 461
Mississippi River Valley
Quote:

Once again, a definition contains the crucial bit of information needed to resolve a problem.



You are SO right Richard. For some reason I failed to look at the definition of "credit sale". That would have cleared the whole thing up for me. I don't know why I hadn't previously looked at that as I am a "detail" kind of person - usually anyway!

Thank you all for your help!

PS...We're getting a foot of snow today and Spring is suppose to begin on Sunday!?! Tell me again why I choose to live in MN? Have a great weekend everyone!
Last edited by Kimm; 03/18/05 04:36 PM.
_________________________
How long a minute is depends on what side of the bathroom door you're on.

Return to Top

Moderator:  Andy_Z