I’m confused! Say we have a construction only loan – that required TIL disclosures – but it was documented as a commercial loan so none were given. There were prepaid finance charges on this loan (1/2 point and escrow fees.) The interagency policy guides says if no APR is disclosed then the APR shall be considered the contract rate. I get that. But it also says that “when a finance charge was not disclosed, no adjustment will be ordered.” When you use the OCC’s APRWIN, when it asks for “Disclosed Finance Charge” – it says “If N/A leave blank”. So I leave it blank because a Finance Charge was not disclosed. This way the program does not show an APR or Finance Charge violation. First I thought it was okay – relying on the policy guide statement that if no finance charge was disclosed then no adjustment will be ordered. But that doesn’t sound right. So do I have to run APRWIN again – this time inputting the “calculated finance charge”? That way the program comes up with a violation and reimbursement. Anyone have any ideas?

If I'm understanding correctly, this was a commercial loan therefore Reg Z does not apply. Was it incorrectly classified as commercial?

In my example - the loan is a personal purpose loan - so TIL disclosures were required.