Underdisclosed APR on LE

Posted By: ScoutLaRue

Underdisclosed APR on LE - 05/18/17 08:28 PM

We showed the closing fee of $275 on the LE, however, we did not have it marked as a PPFC. Now we are working on the CD and noticed this and changed it to a PPFC.
The APR is not off by more than 1/8th ... but shouldn't we still credit the borrower ..still have an APR violation? I am reading https://www.fdic.gov/regulations/laws/rules/6000-300.html#fdic6000130 section 130 and confusing myself.

Also, we don't have to send out another LE showing the correct APR...we can disclose this on the CD, right?

Thank you.
Posted By: rlcarey

Re: Underdisclosed APR on LE - 05/18/17 08:34 PM

You have a uncorrectable disclosure violation on the LE. Only final documents create civil or regulatory finance charge or APR violation penalties. There is no APR comparison between LEs or the last LE and the initial CD.
Posted By: ScoutLaRue

Re: Underdisclosed APR on LE - 05/18/17 08:41 PM

Ok, if this had already closed...we would need to refund. But in this case, change it on the CD and call it a day? BOL is so helpful to this newbie!! Thank you!