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#1800840 - 04/03/13 02:52 PM Discount rate with AFT
Web Offline
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Joined: May 2005
Posts: 316
We offer a .25% discount on a fixed rate loan if borrower sets up and automatic payment from checking. The note discloses as a fixed rate with preferred pricing and says if AFT is terminated the rate will increase by .25% and give example of new payment. Auditor says it needs to be disclosed as a variable loan. Does it? Doesn't seem like it should be.

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Lending Compliance
#1800902 - 04/03/13 03:56 PM Re: Discount rate with AFT Web
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,371
Galveston, TX
Yes, it is a variable rate loan, but it sounds like you might already be giving the proper disclosures required? What specifically is the citation?
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