Posted By: CindyS

## APRWIn - APR overstated? - 09/12/19 09:53 PM

I'd appreciate some help to make sure I'm not misunderstanding the APR requirements...

I'm doing a TRID audit and not agreeing with one APR disclosed on the CD. The purpose of the Loan in question was for construction. However, it was done as a single advance on day one with monthly interest payments and a balloon payment at maturity.

Loan Amount $20,000

Interest Rate 6%

Monthly Interest only payment - $100 for 11 months

Final payment $20,100.

Disbursement Date 2-21-19

1st payment date 3-21-19

Maturity and final payment date 2-21-2020

Amount financed: $19,834

Disclosed APR: 13.891%

Disclosed Finance Charge: 1,366

When I do APRWin, I get an APR of 6.8612% with a violation of APR overstated by 7.0298.

When we questioned the software/forms company, they responded back that the original disclosed APR is correct and they included screenshots of APRWin using the Construction Loan option.

I am doing APRWin using the Regular APR method because I believe that is what's required when you have a single advance.

I'd appreciate if someone could let me know if I'm thinking about this correctly or not. If it is overstated, what's the corrective action?

Thank you!

I'm doing a TRID audit and not agreeing with one APR disclosed on the CD. The purpose of the Loan in question was for construction. However, it was done as a single advance on day one with monthly interest payments and a balloon payment at maturity.

Loan Amount $20,000

Interest Rate 6%

Monthly Interest only payment - $100 for 11 months

Final payment $20,100.

Disbursement Date 2-21-19

1st payment date 3-21-19

Maturity and final payment date 2-21-2020

Amount financed: $19,834

Disclosed APR: 13.891%

Disclosed Finance Charge: 1,366

When I do APRWin, I get an APR of 6.8612% with a violation of APR overstated by 7.0298.

When we questioned the software/forms company, they responded back that the original disclosed APR is correct and they included screenshots of APRWin using the Construction Loan option.

I am doing APRWin using the Regular APR method because I believe that is what's required when you have a single advance.

I'd appreciate if someone could let me know if I'm thinking about this correctly or not. If it is overstated, what's the corrective action?

Thank you!