Posted By: WHEDA
Reg Z Compliance - 02/06/13 10:07 PM
I grabbed the wrong hat when I left home this morning and now I have "Stupid" imprinted across my forehead. That's my excuse for asking a stupid question, and I'm sticking to it!
I have a fixed-rate, 30 yr, FHA loan where the APR was understated by .055% (so within 1026.22(a)(2) [.125%] tolerance) but the corresponding Finance Charge is understated by $237.26 (so not in compliance with 1026.18(d)(1)(i)).
Am I correct in thinking that if the APR is less .125% lower than the correct APR, but the FC is more than $100 lower than the correct FC there is a violation?
Is there even more steps to determine if there is a tolerance violation?
If there is nothing more, is my corrective action to refund $237.26 to the borrower or do I only refund $137.26 to get within $100?
Thank you for your guidance.
I have a fixed-rate, 30 yr, FHA loan where the APR was understated by .055% (so within 1026.22(a)(2) [.125%] tolerance) but the corresponding Finance Charge is understated by $237.26 (so not in compliance with 1026.18(d)(1)(i)).
Am I correct in thinking that if the APR is less .125% lower than the correct APR, but the FC is more than $100 lower than the correct FC there is a violation?
Is there even more steps to determine if there is a tolerance violation?
If there is nothing more, is my corrective action to refund $237.26 to the borrower or do I only refund $137.26 to get within $100?
Thank you for your guidance.