I am using the OCCs APR checker to verify an APR we disclosed. The OCC checker says we've overstated. Will someone check this scenario and let me know what APR you get? Amount Financed = $5,000, Finance Charge = $272.53, 5.10 interest rate, 11 payments of $439.38 and 1 payment of $439.35. My loan processor says 10.345% and OCC APR is 9.9132%. Violation for overstating - glad it's not reimbursable! Thanks in advance.

What is the note date and the date of first payment?

I checked disclosed APR against OCC calculator. The APR is within tolerance; however, the finance charge is understated. According to the OCC calculator, they are not reimbursable; however, examiners say there is additional step to determine if reimburseable or not. In reviewing the FFIEC Exam procedures - using matrix for understated finance charges, the question I cannot answer is: Is the disclosed FC + the FC reimbursement tolerance less than the correct FC? How would I calculate that? Thank you for any assistance.

I'm not sure what you mean by disclosed FC + the FC reimbursement tolerance. You have a $100 lead way for loans secured by real property or a dwelling; if not secured by real property or a dwelling you have $5 for loans =< $1,000 and $10 for loans > $1,000. 226.18(d).

Note date is 02-22-2005 and first payment date is 03-16-2005 with last payment on 02-16-2006

In APR Win I entered the following:

Amount Financed $5000
Disclosed Finance Charge 272.53
Disclosed APR 10.345
Note Date 02/22/2005
First Pmt 03/16/2005 (Odd days calculated at 22 days)
11 pmts at 439.98
1 payment at 439.35

APR Win returned:

APR 10.3447
FC 272.53
Amt Fin $5000
Total Pmt $5272.53

There were no violations indicated.

I forgot to tell you I'm using Ver. 5.0.0 of APR Win.

If you don't enter the date of note and first payment date, the program defaults to 1 unit & the result is 9.9132%.

I went back into APR Win (I too use 5.0) and entered the actual payment dates and it worked fine - same as yours. It still makes me wonder (not enough to get into the calculation details) why none of the other 25 +/- loans I keyed in without entering the actual payment dates worked just fine. Could be that this one particular loan didn't run 30 + days before the first payment was due.... any way, thanks so much for working on this!