Is This Fee a Finance Charge?
03/07/2005
Is a fee collected for the preparation of extension/modification documents on a consumer non-real estate loan a fee to be included in the APR?
Dan is Vice President and Compliance Officer for The Peoples State Bank with its main office located in Ellettsville, IN and supporting nine branches in surrounding communities. The bank is a privately owned bank that began its existence in 1904.
Dan entered the financial services arena in 1974 when he went to work for Commercial Credit Corporation. He worked eighteen years with Bank One and three years with the Indiana University Employees Federal Credit Union. In addition to serving as a Compliance Officer, he has served as a Collection Officer, Consumer Loan Officer, Commercial Loan Officer and Loan Operations Officer. His primary duties falls within lending compliance, training and consumer loan reviews.
He attended Three Rivers Junior College in Poplar Bluff, MO and Arkansas State University in Jonesboro, AR. He is also a graduate of the ABA Bank Card School, ABA Commercial Lending School and ABA National Truth-in-Lending Compliance School.
03/07/2005
Is a fee collected for the preparation of extension/modification documents on a consumer non-real estate loan a fee to be included in the APR?
03/07/2005
We are reviewing a loan called a One-Time Close Construction loan. The construction loan and long-term financing are closed at the same time. I am wondering if the lender’s inspection fee can be included as a prepaid finance charge when calculating the APR. From what I read in Staff Commentary for Reg Z (Section 226.4(a)(1), this fee should be a finance charge. In our case, the inspection fee is paid to a third party. Does that make any difference? I just need clarification.
02/21/2005
We have a customer who is paying regularly, but late. Can we pay the late charges on the loan from the escrow account there for taxes and insurance?
02/21/2005
I need to know if there is a regulation that deals with capitalized interest on renewed loans.
02/21/2005
I have a compliance question regarding right of rescission. If a person's primary residence is a piece of land with a mobile home on that piece of land and the person applies for a loan using the land only as collateral, is a rescission period still required? I would think it would be since the property is that person's primary residence, even though the mobile home is not being used as collateral.
02/21/2005
Can you contact a delinquent borrower during the twenty-day period after you've provided them with a "Notice to Cure Default"? I've been a lender for 24 years and was trained that the lender could not initiate any contact during the cure period, but could respond if the debtor called. We have a difference of opinion at our bank.
02/21/2005
If I have a life-of-loan flood certification, do I need to recertify every seven years?
02/21/2005
Is mortgage protection insurance that is paid into an escrow account at closing considered a prepaid finance charge for calculating the APR?
02/07/2005
What is the actual rule about Section 32 Reg Z predatory lending? Does it only include all fees charged to the borrower, or does it also include any yield spread premium paid by the lender to the broker?
02/07/2005
Are early disclosures required on a construction loan to an individual? The bank loan would be for construction only. Permanent financing is being provided by another lender. The first draw on the loan will transfer the lot (purchase money) into the borrower's name.