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#629203 - 10/25/06 08:41 PM HOEPA
Vander Offline
100 Club
Vander
Joined: Jul 2003
Posts: 216
Texas
I've just found several loans where the HOEPA disclosure was given to the customer, but the loan was not subject to HOEPA. Is there a way (or a need) to correct this?

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Lending Compliance
#629204 - 10/26/06 01:45 PM Re: HOEPA
renniks Offline
Diamond Poster
renniks
Joined: Sep 2003
Posts: 2,162
New England
You do not need to give the HOEPA disclosure if the loan is not a HOEPA loan.

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#629205 - 10/26/06 02:48 PM Re: HOEPA
Vander Offline
100 Club
Vander
Joined: Jul 2003
Posts: 216
Texas
I understand that we do not need to give it if it is not required. However, we have several that have been given in error. I'm trying to determine the compliance implications or if there is a way to correct. I appreciate your input.

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#629206 - 10/27/06 02:58 PM Re: HOEPA
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I don't think there is any way to correct this nor do you need to. The only "problems" I see are:
1. This is a waste of everyone's time (providing something not necessary),

2. Confusion to the customer, and

3. You basically tell the examiners your people don't understand this requirement, so they may look at this area harder in the next exam.
_________________________
David Dickinson
http://www.bankerscompliance.com

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