12/31/2023
The initial and locked Loan Estimate (LE) on an ARM loan was based off the WSJP index. When it was time to issue the initial Closing Disclosure (CD), the WSJP index had increased causing the APR on the CD to be about 1/2% higher than on the last LE. Should we adjust the index value on the CD to match the index value used on the LE to keep the APR within tolerance, or do we need to update the index value to the current value and redisclose the LE and then inssue an initial CD?
12/10/2023
A UCC filing fee paid to a government entity to perfect a security interest in a consumer product must be listed in the Fed Box to avoid being a finance charge and included in the APR. Our filing fee is paid to a non-government third party vendor. Because of this third party involvement, our compliance department feels the fee should not be listed in the Fed Box. If all or a portion of filing fee we charge to the borrower will be paid to the government entity I feel that portion should be noted excluded from the finance charge and APR. Do you agree?
09/10/2023
If we are charging a modification or change in terms fee, and call it an administrative fee on a consumer dwelling secured loan, and the LOS prints and customer signs the document, I understand that this is allowed because the modification is not considered a refinancing under Reg Z. However, I am being asked how charging a fee payable to the bank does not affect the APR and require new disclosures?
07/09/2023
Is an annual fee for a credit card considered a membership or participation fee under Reg Z?
01/08/2023
Are credit life insurance, disability insurance, or GAP unsurance included in the APR we dosclose to borrowers?
08/07/2022
Our bank has an indirect lending department where we finance autos, RVs, etc. We have always required that the dealer disclose any protection products that are financed, such as an extended service contract or GAP insurance, as a line item on the loan contract as per Reg Z. We are getting pushback from some of our dealers concerning the disclosure of some of these products. They claim that any non-refundable product, such as paint protection, is a "front-end" product that Reg Z excludes from disclosure on the contract. We can find no such distinction in Reg Z between refundable and non-refundable products. Does such a distinction exist or should all financed protection products be disclosed?
12/29/2019
How can I validate that the APR I have disclosed is correct during a leap year?
I noticed that if I enter the loan date as 02/28/19 and the first due date as 03/28/19, APRwin returns that there is 1 period and 0 odd days which
matches what our internal software has calculated.
If I enter the loan date as 02/29/20 and the first due date as 03/29/20, it
returns 0 periods and 28 odd days. This definitely doesn't match our internal software as it also returns 1 period and 0 odd days for this scenario.
I've read online that APRwin has limitations for calculations when the year has 366 days. Should we go with 1 and 0 and is there another tool we can use
to confirm this?
03/31/2019
If the interest rate disclosed in a promissory note is incorrect (it is lower than what is actually being charged), is that a Reg Z problem? What if the TILA disclosure is within tolerance and is considered correct, could this then be an issue with UDAAP?
02/17/2019
If an APR fee is paid at closing by the lender should it still count as a APR fee the borrower pays?
01/20/2019
Can you tell me what fees are supposed to affect the APR?