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#36599 - 10/10/02 06:34 PM TIL in 1978
E.E.G.B Offline
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E.E.G.B
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the sandy shore
Can anyone tell me, did the TIL disclosures that would have been given on a purchase mortgage in 1978 look different from the TIL disclosures that would be given today? And if possible, a source where I could see what they would have looked like in 1978?

We have a loan customer who is arguing that his TIL disclosure from 1978 does not contain all required elements.

Thanks in advance........
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#36600 - 10/10/02 07:37 PM Re: TIL in 1978
Andy_Z Offline
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I'd say your best bets are Richard Insley, Alan Dombrow or someone is a rally big pack-rat.

What does the customer say was wrong?
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#36601 - 10/10/02 07:45 PM Re: TIL in 1978
John Burnett Offline
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Cape Cod
I'd ask the customer to provide you with a photocopy of his disclosure so you can check it out. Until you see it and verify what he claims, it's all BS.
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#36602 - 10/10/02 08:10 PM Re: TIL in 1978
E.E.G.B Offline
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the sandy shore
Apparently the situation is that the customer, who has been happily paying their mortgage every month, thought that they were going to be paying it off in early 2003. So they called to find out what the final total payment would be. And were told that no, they owed quite a bit more than they thought. Part of the problem is that the loan was not set up to amortize properly, which is an issue, but the customer is now also claiming that the TIL they have was missing key data (someone has apparently seen it and it doesn't have the FC along with some other data.) I just really hope the transaction is not going to suddenly become rescindable.
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I disbelieved what he was saying so hard, I probably created an alternate universe where it wasn't true.

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#36603 - 10/10/02 09:02 PM Re: TIL in 1978
Dan Persfull Offline
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Bloomington, IN
Andy, John, Randy or anyone else, help me out here, but I don't think she has to worry about rescission.

1. Material disclosure error gives 3 years to rescind. The 3 years is definitely up.

2. Statute of Limitation is 1 year. That is definitely up also.

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#36604 - 10/11/02 12:30 PM Re: TIL in 1978
SteveG Offline
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But what if customer refuses to pay balance, you start a foreclosure ...? My approach to an actually misamortized loan (for ex. in the disclosures you said there would be 360 payments of X without a balloon and the payment amount and the note payment are they same and do not actually reduce the loan to 0), especially if there is a potential Reg. Z issue, is to try to reach a global settlement with the borrower concerning payment of the balance that includes Reg Z issues (rescission, defenses, recoupment etc.)and any claims for attorney's fees.

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#36605 - 10/11/02 12:33 PM Re: TIL in 1978
SteveG Offline
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Oops, just noticed it was a purchase money mortgage ... that eliminates the rescission recoupment defense issues ... so I would still negotiate a settlement on the balance repayment but you are in a pretty strong position.

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#36606 - 10/11/02 01:10 PM Re: TIL in 1978
Sinatra Fan Offline
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New Jersey
If you are a portfolio lender, I would suggest you check your mortgage files for loans closed in 1978. If that information is not available to you, send me your fax number, and I'll be happy to fax you a copy of a TIL we gave on a purchase loan in 1978 (with nonpublic personal information deleted, of course).
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#36607 - 10/11/02 01:34 PM Re: TIL in 1978
Richard Insley Offline
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Toano, VA
Under old Reg Z, you did not have to disclose the Total of Payments or the Finance Charge on a purchase money first lien transaction.
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#36608 - 10/11/02 02:14 PM Re: TIL in 1978
Andy_Z Offline
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I knew (historian) Richard would have an answer. The next question is what was the break point for new vs. old Reg. Z? I trust from your comments, this was the "old" version.

While "Z" undergoes revisions annually, I do recall you talking about a major revision in the past. Was this a Fed Box revision?
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#36609 - 10/11/02 02:14 PM Re: TIL in 1978
E.E.G.B Offline
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the sandy shore
Thank you all very much! Sahoog, PM'ed you my fax number. I truly appreciate the assistance.
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I disbelieved what he was saying so hard, I probably created an alternate universe where it wasn't true.

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#36610 - 10/11/02 02:25 PM Re: TIL in 1978
Anonymous
Unregistered

If the only problem here is that the loan was not properly amortized and still has a balance, what are the possible solutions? We found a couple of those. The loans were modified but the payments weren't changed to reflect the new terms.

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